NPM 157-2012

Requesting Entity: Regulatory Office Tourism Infrastructure and Enterprise Zone Authority (TIEZA)

Issues Concern: Extension of Contract with Additional Remuneration of Consultant



Whether TIEZA may be allowed to grant time extension with corresponding additional remuneration to its consultant under the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184.

Section 2 of Annex "F" of the IRR of RA 9184 expressly provides that all consultancy contracts shall be fixed price contracts and any extension of contract time shall not involve any additional cost. Based on this provision, an extension of time may be granted for contracts involving consultancy services provided that it should not entail additional cost to the Procuring Entity (PE) to cover the extension. Moreover, we note that Section 2 of Annex "F" is clear and does not provide any exceptions to the fixed price contract feature.

Based on the foregoing, x x x TIEZA may validly grant time extension for the consultant to completely render the services required and stipulated under the contract for consultancy services for the RRE. However, the time extension should not entail additional cost to the PE as this is prohibited under Annex "F" of the IRR of RA 9184.