COMMISSION ON AUDIT CIRCULAR NO. 84-230

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COMMISSION ON AUDIT CIRCULAR NO. 84-230 September 18, 1984
TO
: All Heads of Ministries, Bureaus and Offices of National Government; Managing
Heads of Government owned and/or Controlled Corporations, Boards and
Commissions; Chief Accountants/Corporate Treasurers; Provincial Governors,
City/Municipal Mayors; Local Treasurers; COA Managers/ Regional Directors
and All Others Concerned.
SUBJECT : Implementation of Presidential Decree 1948 (as duly renumbered from PD
1943 by the Malacanang Records Office).
For the information of all concerned, quoted is the full text of Presidential Decree No.
1948 dated July 18, 1984:
"Malacañang
Manila
PRESIDENTIAL DECREE NO. 1948
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" systems 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" system;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution, do hereby decree and order that
the limit of capital outlay for "Pakyaw" contracts for public work projects, as authorized under
P.D. 950, be increased from fifty thousand pesos (P50,000) to five hundred thousand pesos
(P500,000) per contact unless an increase 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.
(SGD.) FERDINAND E. MARCOS
By the President:
(SGD.) JUAN C. TUVERA
Presidential Executive Assistant"
All concerned should be guided accordingly.
(SGD.) FRANCISCO S. TANTUICO, JR., Chairman
(SGD.) SILVESTRE D. SARMIENTO, Commissioner
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