Ferraris 06:01 PM, Oct 25, 2022
Good day Ma'am/Sir,
I would like to request from your good office if you can provide me a list of laws or regulations that regulate the time within which a buyer/vendee must pay the supplier/vendor (Basically, laws or regulations that provide the maximum number of days a buyer/vendee must pay its supplier/vendor).
I look forward to your response.
Thank you and regards!
Officer 11:21 AM, Nov 10, 2022
November 10, 2022
Dear Atty. Ferraris,
Thank you for your request dated Oct 28, 2022 01:29:46 PM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.
You asked for a list of laws, rules and regulations that regulates or provides the maximum period within which a buyer must pay its supplier.
Response to Request
Your FOI request is approved.
At the outset, we emphasize that in every procurement project, the Procuring Entity is allowed to determine the terms of payment on the partial or staggered delivery of the Goods/ Projects, provided such partial payment shall correspond to the value of the goods delivered and accepted in accordance with prevailing accounting and auditing rules and regulations (General Conditions Clause (GCC) of the Philippine Bidding Documents (PBD).
Thus, the Bidding Documents for the procurement of a project, particularly under its GCC and Special Conditions Clauses, should spell out such terms.
As requested, attached herewith, for your reference, are copy of some relevant laws, rules and regulations on payment. Note that all the foregoing documents are available online.
1. Presidential Decree No. 1445 otherwise known as the Government Auditing Code of the Philippines
Section 88 Prohibition against advance payment on government contracts
Section 91 Payment to creditors
Section 92 Persons authorized to draw warrants or checks for payment out of government funds
2. Office of the President Memorandum Order No. 48 Increasing the Allowable Amount of Advance Payment for Procurement Activities under Republic Act No. 11469 or the Bayanihan to Heal as One Act
3. Annex D of the 2016 revised IRR of RA No. 9184 Contract implementation Guidelines for the Procurement of Goods, Supplies and Materials
Item 4 Advance Payment
4. Annex E of the 2016 revised IRR of RA No. 9184 Contract Implementation Guidelines for the Procurement of Infrastructure Projects
Item 4 Advance Payment
Item 5 Progress Payment
Item 6 Retention Money
5. Latest edition of PBD for Procurement of Goods
6. Latest edition of PBD for Procurement of Infrastructure Projects
7. COA Circular No. 2021-014
Your right to request a review
If you are unhappy with this response to your FOI request, you may ask us to carry out an internal review of the response by writing to Executive Director, Atty. Rowena Candice M. Ruiz, thru e-mail address at firstname.lastname@example.org. Your review request should explain why you are dissatisfied with this response and should be made within fifteen (15) calendar days from the date when you received this letter. We will complete the review and tell you about the result within thirty (30) calendar days from the date when we receive your review request.
If you are not satisfied with the result of the review, you then have the right to appeal to the Office of the President under Administrative Order No. 22 (s. 2011).
To help us in our constant endeavor to provide excellent service, we would sincerely appreciate if you shared your thoughts, concerns, comments, and suggestions through this brief customer feedback form provided in the link below:
Updated 2016 revised IRR of RA No. 9184 as of 13 October 2022.pdf
08102022Revised 6th Edition PBDs_Goods_a.pdf
08112022Revised_6th Edition PBDs_Infrastructure Projects_012521a (1) (5).pdf
OP Memo Order No. 48.pdf