15% mobilization fee

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15% mobilization fee

Post by Berna on Thu Mar 10, 2011 10:55 am

15 % mobilization fee is not allowed for locally funded projects...what section of RA 9184 is the basis of this
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Re: 15% mobilization fee

Post by riddler on Thu Mar 10, 2011 1:51 pm

Dette wrote:15 % mobilization fee is not allowed for locally funded projects...what section of RA 9184 is the basis of this

dette, you maybe referring to a 15% ADVANCE PAYMENT for Infrastructure Project which is much allowed for locally/nationally funded projects under Section 4 (Advance Payment) of Annex "E" of the IRR . Very Happy
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Re: 15% mobilization fee

Post by engrjhez® on Thu Mar 10, 2011 1:59 pm

Dette wrote:15 % mobilization fee is not allowed for locally funded projects...what section of RA 9184 is the basis of this

If it is on procurement of GOODS, refer to Annex D of the IRR:
4.1. In accordance with Presidential Decree 1445, advance payment shall be made only after prior approval of the President, and shall not exceed fifteen percent (15%) of the contract amount, unless otherwise directed by the President; Provided, however, that for cases mentioned under 4.3, 4.4, and 4.5 of these guidelines, no prior approval by the President shall be necessary.

For update, refer to GPPB Resolution 04-2010.


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Re: 15% mobilization fee

Post by RDV @ GP3i on Fri Mar 11, 2011 7:42 am

Dette wrote:15 % mobilization fee is not allowed for locally funded projects...what section of RA 9184 is the basis of this

Mobilization or advance payment up to 15% of the contract amount is actually allowed for Infra projects (Annex E of the IRR). This has been carried over from P.D. 1594.

The general rule really is no advance payment unless otherwise approved by the President. This could be found in P.D. 1445. However, a single advance payment of up to 50% of the contract amount shall be allowed for services where the requirement of advance payment is a standard industry practice and these are: (a) hotels and restaurants services, (b) use of conference/seminars and exhibit areas, and (c) lease of office space. These are clearly specified in Annex D of the IRR. LIkewise, advance payment of up to 15% only, unless otherwise directed by the President, shall be allowed for the procurement of goods to address contingencies in areas where there is a "State of Calamity."

In the revised IRR, specifically Item 4.5 of Annex D, advance payment of up to 10% for goods supplied from abroad has already been allowed. To address the alleged discrimination against goods supplied locally, the GPPB in Resolution 04-2010 dated 25 June 2010 recommended for the approval of the President amendment to Item 4.5 of Annex D to allow advance payment of up to 15% of the contract amount for all goods, whether supplied abroad or locally. However, up to now this GPPB recommendation has not yet been approved by the President.

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Re: 15% mobilization fee

Post by Berna on Wed Mar 16, 2011 4:20 pm

Thank you very much po...kase po there is disallowance from coa for the requested 15% advance payment for infra proj.
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Re: 15% mobilization fee

Post by sunriser431 on Fri Mar 18, 2011 10:27 am

Dette wrote:Thank you very much po...kase po there is disallowance from coa for the requested 15% advance payment for infra proj.
What could be the reason it was disallowed? bounce
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Re: 15% mobilization fee

Post by Berna on Tue Mar 22, 2011 10:55 am

sunriser431 wrote:
Dette wrote:Thank you very much po...kase po there is disallowance from coa for the requested 15% advance payment for infra proj.
What could be the reason it was disallowed? bounce

Accordingto COA po, RA 7160 has this provision that 15% advance payment is not allowed for locally-funded projects.
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Re: 15% mobilization fee

Post by Engr_Roselyn on Mon Apr 13, 2015 8:45 am

eto ba un?

"SECTION 19. Eminent Domain. – A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property."

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Re: 15% mobilization fee

Post by engrjhez® on Mon Apr 13, 2015 9:35 am

Engr_Roselyn wrote:eto ba un?

"SECTION 19. Eminent Domain. – A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property."

No. The above cited provision is about expropriation and has nothing to do with the prohibition on advance payment.

COA's contention may be drawn from the following:

GENERAL RULE: The government shall not be obliged to make an advance payment for services not yet rendered or for supplies and materials not yet delivered under any contract therefor.


EXCEPTION: When there is prior approval of the President.
Section 88. Prohibition against advance payment on government contracts.

1. Except with the prior approval of the President (Prime Minister) ... No payment, partial or final, shall be made on any such contract except upon a certification by the head of the agency concerned to the effect that the services or supplies and materials have been rendered or delivered in accordance with the terms of the contract and have been duly inspected and accepted.

2. Notwithstanding the foregoing paragraph, any government agency, with the approval of the proper department head, may furnish supplies and materials to any party who has a contract with that agency if the supplies and materials are needed in the performance of the services being contracted for and the value thereof does not exceed in any one month ten percent of the value of the services already rendered due and unsettled as computed by the agency concerned.


EXCEPTION TO THE EXCEPTION: Local Government Code provides

Section 338. Prohibitions Against Advance Payments. - No money shall be paid on account of any contract under which no services have been rendered or goods delivered.

Any comment?
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