NPM 073-2007

Requesting Entity: Laoag-Ilocos Norte Constructors' Association

Issues Concern: Implementation of Infrastructure Project by Administration



Whether an implementing agency may lease construction equipment from private contractors to be used for the implementation of infrastructure projects by administration

Please note the requirement that the implementing agency must own the tools and construction equipment or must have access to such tools and construction equipment owned by other government agencies. In addition, the Revised Guidelines [for the Implementation of Infrastructure Projects by Administration] provides that no contractor shall be used by the procuring entity, directly or indirectly, for works undertaken by administration, except the manual labor component which may be undertaken by the implementing agency concerned, by job order or through the pakyaw contracting system. Consequently, the implementing agency cannot lease the tools and construction equipment from private contractors.