WHEREAS, Section 1917 of the Revised Administrative Code provides for and recognizes "Pakyaw" contracts in the implementation of certain public works projects;

WHEREAS, said "pakyaw" contracts partake of the nature of undertaking public works projects under the Filipino bayanihan spirit where the workers, moved by a 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 the "pakyaw" system as an effective means undertaking public works projects by labor-intensive methods and for this purpose it is deemed necessary that the cost ceiling of "pakyaw" contracts be increased from the present level of ten thousand pesos (P10,000.00) to fifty thousand pesos (P50,000.00) per contract;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order that the limit on the capital outlay for "pakyaw" contracts for public works projects, authorized under Section 1917 of the Revised Administrative Code, as amended, be fifty thousand pesos (P50,000.00) per contract, and the department heads, bureau and agency heads, regional directors, and district and city engineers of bureaus and agencies concerned are hereby authorized to enter into negotiated "pakyaw" contracts.

All laws, rules and regulations inconsistent with the provisions of this decree are hereby repealed or modified accordingly.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 22nd day of June in the year of Our Lord, nineteen hundred and seventy-six.