PROCUREMENT AND USE OF CEMENT FOR DPWH INFRASTRUCTURE PROJECTS AND OTHER RELATED MATTERS

In the interest of public service and in order to rationalize the
procurement and use of imported cement for DPWH infrastructure projects,
the following guidelines and policies relative thereto are hereby
prescribed for the guidance of all concerned:

1.       DPWH contractors for infrastructure projects may use
imported cement instead of domestically produced cement. Contract prices
may be escalated in accordance with the Price Escalation Formula
prescribed under P.D. 1594, as amended, without distinction as to the
source of the cement used in the project.

2.       As a matter of policy, DPWH does not intervene in the
procurement of cement for the use of the contractors for their projects.
 In the interest of public service, however, DPWH may assist
contractors in procuring their cement requirements.  In such cases, the
contractors shall request for assistance, in writing, from the DPWH
Implementing Office concerned.  The DPWH Implementing Office concerned,
thru the DPWH Task Force to Oversee the Supply of Portland Cement (c/o
The Director, Bureau of Research and Standards, EDSA, Quezon City),
shall inform the contractors regarding arrangements on the allocation
for imported cement from the Philippine International Trading
Corporation (PITC), PHILCEMCOR, or other cement suppliers, provided that
the contractors agree to pay for the cement in accordance with the
terms and conditions prescribed by the supplier.

3.       The written request of contractors for assistance in the
procurement of cement shall contain manifestation that the cement being
procured thru DPWH shall be exclusively used for specific DPWH projects.

4.       Contractors may, likewise, request in writing the DPWH to
advance the payment for the cement requirements of their projects, using
funds obligated for their contracts.  It is desired, however, that the
contractors shall identify the supplier, otherwise DPWH will source
their requirements from the PITC, PHILCEMCOR or other cement suppliers
offering ready stocks and/or lower prices.  For the faithful re-payment
of the advanced payment made by the DPWH, the contractors concerned
shall submit a Surety Bond issued by an acceptable surety company.

5.       Advanced payment made by the DPWH shall be refunded by the
contractors concerned through deductions in their progress billings
under a definite re-payment schedule mutually agreed upon by DPWH and
the contractors.  In case of termination/rescission of contract, the
advanced payment shall be considered an obligation of the contractor for
GOP liquidation.

6.       Contractors shall be fully responsible for the proper
storage of their cement, including possible damage or loss that may
occur.

7.       Contractors shall, likewise, be responsible for the
quality of the cement that they use and DPWH reserves the right to
reject those which do not comply with prescribed specifications.

This Order shall take effect immediately.

Adopted: 31 July 1990

(SGD.) FIORELLO R. ESTUAR
Secretary