[ PRESIDENTIAL DECREE NO. 1948 [1], July 18, 1984 ]

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All laws, rules and regulations inconsistent with the provisions of this decree are hereby repealed or modified accordingly.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