NPM 002-2012

Requesting Entity: M.Y. Reyes Builders & Development Corp.

Issues Concern: Request for Price Escalation for the Partial Construction of Francisco Balagtas Elementary School



Assistance on the issuance of the required certification by the Secretary of the Department of Education (DepEd) to support the request for price escalation by M.Y. Reyes Builders and Development Corp. (M.Y. Reyes) pursuant to Republic Act No. 9184 (RA 9184) and its Revised Implementing Rules and Regulations (IRR).

It bears stressing that "[t]he burden of proving the occurrence of extraordinary circumstances that will allow for price escalation rests with the entity requesting for such escalation. NEDA shall only respond to such request after receiving the proof and the necessary documentation. Along this line, the review and approval process under Section 5 of the Guidelines provide that the HOPE shall endorse the request for price escalation to NEDA upon determination that such request is valid and justified.

Anent the foregoing, it is the procuring entity's duty to comply with, and its prerogative to determine the existence of, the conditions set forth in the Guidelines for the review, approval and endorsement of requests for price escalation.

Pointedly, this office is not in a position to favorably act on your request to convince the DepEd Secretary to issue the required certification that will support M.Y. Reyes's request for price escalation presently endorsed to NEDA. To reiterate, the favorable endorsement of request for price escalation is incumbent upon the sound determination of the HOPE pursuant to a judicious application and appreciation of the Guidelines and the facts, including the pieces of evidence presented to support an affirmative transmittal.