INCREASING THE CAPITAL OUTLAY FOR “PAKYAW” CONTRACTS BY AMENDING PRESIDENTIAL DECREE NUMBERED NINE HUNDRED FIFTY

WHEREAS, “Pakyaw” contracts partake of the nature of
undertaking public works projects under the Filipino bayanihan spirit where the
workers, moved by the sense of unity, put up a common capital and render
services on a cooperative basis;

WHEREAS, there is a need to promote the use of “Pakyaw”
system as an effective means of undertaking public works projects by labor
intensive method and for this purpose, it is deemed necessary that the present
cost ceiling of “Pakyaw” contracts be revised to conform with present
conditions, particularly the increased cost of services (labor) and/or
construction materials to be furnished;

WHEREAS, the present cost ceiling of “Pakyaw” contracts in
the amount of fifty thousand pesos (P50.000) provided for under P.D.
950 has become impractical and obsolete and needs to be updated to encourage
more active participation of the citizens in undertaking infrastructure projects
through the “Pakyaw” systems;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution, do hereby
decree and order that the limit of capital outlay for “Pakyaw” contracts for
public works projects, as authorized under P.D. 950, be increased from fifty
thousand pesos (P50.000) to five hundred thousand pesos (P500.000) per contract
unless an increased amount is authorized by the President and the ministry heads
are hereby authorized to enter into negotiated “Pakyaw” contract. Bureau and
agency heads and regional directors may enter into negotiated “Pakyaw” contract,
subject to prior authority by the ministry head concerned.

All laws, rules and regulations inconsistent with the provisions of this
decree are hereby repealed or modified accordingly.

This decree shall take effect immediately.

Done in the City of Manila,
this 18th day of July in the year of Our Lord, nineteen hundred and eighty-four.

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^[1] This PD is further amending Sec. 1917
of the Revised Administrative Code, as amended by PD 950.