NPM No. 034-2016

Requesting Entity: Municipality of Pilar

Issues Concern: Lease of Heavy Equipment / Construction Equipment in the Implementation of Infrastructure Projects by Administration



Whether a procuring entity may lease construction equipment from a private contractor during the implementation of infrastructure projects by administration in accordance with the Revised Guidelines for the Implementation of Infrastructure Project by Administration (Guidelines)


Section 3.5 of the Guidelines explicitly allows for the procurement of tools and construction equipment provided that it is subject to the rules on public bidding. x x x Since procurement of tools and construction equipment has been specifically provided, Section 3.5 is deemed applicable during actual execution of a project implemented through Administration.


x x x


[W]here the need arises during implementation of the project, the implementing agency is not precluded from procuring or leasing tools and construction equipment from private suppliers, provided that it is subjected to the rules of public bidding. However, the implementing agency cannot use a private contractor, directly or indirectly, in this regard.