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pakyaw contract

Post by elma on Wed Mar 11, 2009 9:10 pm

i have query on pakyaw contract....what is the role of BAC in pakyaw contract? can you please enlighten us on this topic? thank you very much.....

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Re: pakyaw contract

Post by engrjhez® on Wed Mar 11, 2009 9:32 pm

"Pakyaw refers to a system of hiring a labor group for the performance of a specific work and/or service incidental to the implementation of an infrastructure project by administration whereby tools and materials arefurnished by the implementing agency. For the specific work/service output, a lump-sum payment is made either through the group leader or divided among the pakyaw workers and disbursed using a payroll system."

For more info, please follow the detailed guidelines on the link below:

http://www.gppb.gov.ph/issuances/Guidelines/2006/Implementation%20of%20Infrastructure%20Projects%20By%20Administration.pdf
Very Happy
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Re: pakyaw contract

Post by RDV @ GP3i on Thu Mar 12, 2009 11:38 am

elma wrote:i have query on pakyaw contract....what is the role of BAC in pakyaw contract? can you please enlighten us on this topic? thank you very much.....

The role of the BAC is, basically:

1) to recommend to the HOPE, thru a BAC Resolution, if the original purpose in the APP is PUblic Bidding (for example), the method of procurement which is Negotiated Procurement - By Administrations;

2) If there is competition in the award of the Pakyaw labor contract, shall evaluate the eligibility of the Pakyaw labor groups participating, particularly by determining that no contractor is used by the pakyaw groups involved; and

3) Recommend to HOPE the award of contract to the winning Pakyaw labor group.
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Re: pakyaw contract

Post by riddler on Tue May 19, 2009 11:56 am

engrjhez wrote:"Pakyaw refers to a system of hiring a labor group for the performance of a specific work and/or service incidental to the implementation of an infrastructure project by administration whereby tools and materials arefurnished by the implementing agency. For the specific work/service output, a lump-sum payment is made either through the group leader or divided among the pakyaw workers and disbursed using a payroll system."

We are planning to recommend a "Pakyaw Labor" type of contract to some maintenance and small outlays project of our LGU, my concern is;

How do we disbursed it using the payroll system you mentioned engrjhez?

Is it allowed to include "only" the name of Head of Pakyaw Labor to the Payroll?

Does the Pakyaw labor contract only includes laborers? What about if the activity involves skilled workers, like carpenters, masons, painters, laborers and the like, where would they fit in?

Do we need to require permit?
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Re: pakyaw contract

Post by engrjhez® on Tue May 19, 2009 9:50 pm

ruel t. wrote:
We are planning to recommend a "Pakyaw Labor" type of contract to some maintenance and small outlays project of our LGU, my concern is;

How do we disbursed it using the payroll system you mentioned engrjhez?
Before any procurement by administration is undertaken, a Poject Facilitator (PF) must be assigned by the Implementing Agency. The PF, with the help of the barangay officials shall enlist all available (as many as possible) skilled and non-skilled labors within the vicinity of the project. The payroll shall be the output basis of the members comprising the pakyaw group. Depending on the arrangements as consistent with the Pakyaw Contract, the disbursement may be on a weekly, 15/30, or lumpsum basis.
ruel t. wrote:Is it allowed to include "only" the name of Head of Pakyaw Labor to the Payroll?
A payroll with only the head or Group Leader of the Pakyaw Group with it is not a payroll - but a paycheck Very Happy. The complete listing of available workforce shall be elaborate of the soundness of the Pakyaw Group created for the purpose. In any way, the payroll shall serve as an evidence of services rendered and activities undertaken by Pakyaw Contract. But for contracting purposes, it is only the Group Leader wo signs the Pakyaw Contract Agreement.
ruel t. wrote:Does the Pakyaw labor contract only includes laborers? What about if the activity involves skilled workers, like carpenters, masons, painters, laborers and the like, where would they fit in?
The term "laborer" is just a noun. Whether skilled or unskilled is just a category. As the contract is efficiently employed using the combination of skilled and unskilled labors, both of their presence are essential.
ruel t. wrote:Do we need to require permit?
Work permit is a LGU requisite. I believe it is mandatory for government projects as it is for private employment purposes. Securing a work permit not only ensures that the laborer is physically and legally fit to work but shall make him accountable of his employment as well (if he has gone nuts). jocolor
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Re: pakyaw contract

Post by riddler on Thu May 21, 2009 7:07 pm

engrjhez wrote:
ruel t. wrote:
We are planning to recommend a "Pakyaw Labor" type of contract to some maintenance and small outlays project of our LGU, my concern is;

How do we disbursed it using the payroll system you mentioned engrjhez?
Before any procurement by administration is undertaken, a Poject Facilitator (PF) must be assigned by the Implementing Agency. The PF, with the help of the barangay officials shall enlist all available (as many as possible) skilled and non-skilled labors within the vicinity of the project. The payroll shall be the output basis of the members comprising the pakyaw group. Depending on the arrangements as consistent with the Pakyaw Contract, the disbursement may be on a weekly, 15/30, or lumpsum basis.
ruel t. wrote:Is it allowed to include "only" the name of Head of Pakyaw Labor to the Payroll?
A payroll with only the head or Group Leader of the Pakyaw Group with it is not a payroll - but a paycheck Very Happy. The complete listing of available workforce shall be elaborate of the soundness of the Pakyaw Group created for the purpose. In any way, the payroll shall serve as an evidence of services rendered and activities undertaken by Pakyaw Contract. But for contracting purposes, it is only the Group Leader wo signs the Pakyaw Contract Agreement.
ruel t. wrote:Does the Pakyaw labor contract only includes laborers? What about if the activity involves skilled workers, like carpenters, masons, painters, laborers and the like, where would they fit in?
The term "laborer" is just a noun. Whether skilled or unskilled is just a category. As the contract is efficiently employed using the combination of skilled and unskilled labors, both of their presence are essential.
ruel t. wrote:Do we need to require permit?
Work permit is a LGU requisite. I believe it is mandatory for government projects as it is for private employment purposes. Securing a work permit not only ensures that the laborer is physically and legally fit to work but shall make him accountable of his employment as well (if he has gone nuts). jocolor



I have four concerns;

1. If we would resort to payroll system, then parang hindi na Pakyaw ang dating, parang by-admin pa rin.

2. Since it is a Pakyaw Contract, then would it still pass through the Local Sanggunian?

3. If we require a Work Permit (Is this different from Business permit?), then we shall require them receipts during
the billing, di ba?

4. What if the Pakyaw Labor cost is 500,000.00 or less, do we need to post it just like ordinary bidding?
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Re: pakyaw contract

Post by RDV @ GP3i on Fri May 22, 2009 3:56 pm

ruel t. wrote:I have four concerns;

1. If we would resort to payroll system, then parang hindi na Pakyaw ang dating, parang by-admin pa rin.

Pakyaw labor contract is only one option to take for the labor portion of the project to be done by administration. The other options available to the procuring entity is to use in-house labor (or its own personnel) or use job order. Kaya talagang by administration pa din.

ruel t. wrote:2. Since it is a Pakyaw Contract, then would it still pass through the Local Sanggunian?

The Pakyaw contract (labor contract with pakyaw group) is only a portion of the total project cost, which includes materials to be procured using procurement of GOODS as the method.

ruel t. wrote:3. If we require a Work Permit (Is this different from Business permit?), then we shall require them receipts during the billing, di ba?

You dont require Work Permit from the Pakyaw Groups. They are not registered also, kaya di sila puede mag-issue ng resibo. That is why you are to use the Payroll System which would serve as your receipt for accounting and auditing purposes.

ruel t. wrote:4. What if the Pakyaw Labor cost is 500,000.00 or less, do we need to post it just like ordinary bidding?

There is still a need to post in the PhilGEPS.
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Re: pakyaw contract

Post by riddler on Fri May 22, 2009 4:36 pm

[quote="RDV"]
ruel t. wrote:I have four concerns;

1. If we would resort to payroll system, then parang hindi na Pakyaw ang dating, parang by-admin pa rin.

Pakyaw labor contract is only one option to take for the labor portion of the project to be done by administration. The other options available to the procuring entity is to use in-house labor (or its own personnel) or use job order. Kaya talagang by administration pa din.

Ok. MEANING TO SAY, WE WILL JUST ENUMERATE THE wages of carpenters, masons, and laborers, then we will put them in the payroll as "job-orders" as approved by the HOPE.

ruel t. wrote:2. Since it is a Pakyaw Contract, then would it still pass through the Local Sanggunian?

The Pakyaw contract (labor contract with pakyaw group) is only a portion of the total project cost, which includes materials to be procured using procurement of GOODS as the method.

this is different from the Pakyaw Contract done by the DPWH and some LGU's.. I have read the contents of their Pakyaw Labor Contract signed by the Head of Pakyaw Group, HOPE, witnessess, and duly notarized by a lawyer.
Since the Contract is approved by the HOPE, would he/she not seek authority from the Local Sanggunian to sign the CONTRACT under The Local Gov Code?


Last edited by ruel t. on Sun May 24, 2009 12:25 pm; edited 1 time in total
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Re: pakyaw contract

Post by engrjhez® on Fri May 22, 2009 11:29 pm

ruel t. wrote:I have four concerns;

1. If we would resort to payroll system, then parang hindi na Pakyaw ang dating, parang by-admin pa rin.

2. Since it is a Pakyaw Contract, then would it still pass through the Local Sanggunian?

3. If we require a Work Permit (Is this different from Business permit?), then we shall require them receipts during
the billing, di ba?

4. What if the Pakyaw Labor cost is 500,000.00 or less, do we need to post it just like ordinary bidding?
Sensya na. I thought I have replied to this earlier. I just realized I left it unposted when I left my PC yesterday. Anyway here are my answers:

1. The Pakyaw Contract is fixed as the name implies. We have two options, pay the contract by lumpsum (payable to the Group Leader) or by payroll para di masyado bigla ang labas ng pera. Yes, parang by-admin rin. But i feel more comfortable using the payroll system because it elaborates the labor and is more explicit on the actual enlistment of pakyaw laborers. Kita natin agad ung activity nila. Anyway, the pakyaw contract shall provide all other details.

2. Just like projects implemented by contract, YES it must. As correctly pointed out by RDV, the materials as component shall be procured by public bidding. The labor component may be by admin (use of employed personnel) or by pakyaw (as extracted from non-formal sectors of the baranggay). The combination of the materials and labor component realized as a project must be specifically pass the budget approval of the Sanggunian.

3. Yes, a "work permit" is different from "business permit". For regular privately employed individuals, work permit is required by the LGU and includes securing health certificate (that they are fit to work) and subsequent registration (for records and taxation purposes). For those employed under Pakyaw Contract, the same must be applied, but applicable fees may be waived. In any case, it is the LGU's mandate to require it or not. The pakyaw groups, because they are not really registered as a business, are not required to issue receipts. They shall only act as Job Orders drawn out from unemployed and underemployed workers.

4. I agree with RDV that for the purposes of transparency, the pakyaw contract must be published just like any procurement. The issued GPPB guidelines only specified "...pakyaw labor shall not exceed P500,000.00...". Because nothing is mentioned for the case where pakyaw labor (per group) exceeds this amount, I presume such is NOT allowed.
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Re: pakyaw contract

Post by riddler on Sun May 24, 2009 11:27 am

engrjhez wrote:
ruel t. wrote:

1. If we would resort to payroll system, then parang hindi na Pakyaw ang dating, parang by-admin pa rin.

Sensya na. I thought I have replied to this earlier. I just realized I left it unposted when I left my PC yesterday. Anyway here are my answers:

1. The Pakyaw Contract is fixed as the name implies. We have two options, pay the contract by lumpsum (payable to the Group Leader) or by payroll para di masyado bigla ang labas ng pera. Yes, parang by-admin rin. But i feel more comfortable using the payroll system because it elaborates the labor and is more explicit on the actual enlistment of pakyaw laborers. Kita natin agad ung activity nila. Anyway, the pakyaw contract shall provide all other details.

OK. I THINK USING THE PAYROLL SYSTEM FOR PAKYAW CONTRACT MAY BE DIFFICULT FOR PROGRAM HOLDERS to prepare. Suppose the Procuring Entity agreed a Pakyaw labor Contract for Carpenters, Masons, & laborers for Thirty (30) calendar days. Naturally, the PakyaW cONTRACT shall be divided as reflected in the payroll according to the rate (man-day) of each worker such as P275/day for carpenters, P231/day for laborers, and others.
What if the Pakyaw Contract is finished earlier than expected? Say 25 calendar days, instead of 30 calendar days?
HOW do we reflect the contraCT in the payroll?

I THINK PAKYAW Labor CONTRACT thru Lump-Sum payment on the Head of Pakyaw group is the simplest way of disbursing the fund. The only problem i see in using this method are the attachment needed by the Accountant which may include an Official Receipt.
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Re: pakyaw contract

Post by engrjhez® on Mon May 25, 2009 5:16 pm

ruel t. wrote:
OK. I THINK USING THE PAYROLL SYSTEM FOR PAKYAW CONTRACT MAY BE DIFFICULT FOR PROGRAM HOLDERS to prepare. Suppose the Procuring Entity agreed a Pakyaw labor Contract for Carpenters, Masons, & laborers for Thirty (30) calendar days. Naturally, the PakyaW cONTRACT shall be divided as reflected in the payroll according to the rate (man-day) of each worker such as P275/day for carpenters, P231/day for laborers, and others.
What if the Pakyaw Contract is finished earlier than expected? Say 25 calendar days, instead of 30 calendar days?
HOW do we reflect the contraCT in the payroll?
If that happens, the rest of the savings may be payable to the Group Leader who signed for the Pakyaw Contract. On the other hand, if the work duration is exceeded, say 35 days instead of 30 days, the work must still be completed without incurring any additional cost to the implementing agency. Depende sa diskarte ng leader nila.

Another option is, you may include a provision on the contract, that if in case the work was completed earlier than expected, agency will only pay for the actual payroll (which is less than the pakyaw contract amount). That would be more advantageous to the Government. That all depends on the Pakyaw Contract and if both parties agreed to it.

ruel t. wrote: I THINK PAKYAW Labor CONTRACT thru Lump-Sum payment on the Head of Pakyaw group is the simplest way of disbursing the fund. The only problem i see in using this method are the attachment needed by the Accountant which may include an Official Receipt.
The Accountant should know, that the procedure is guided by GPPB Resolutions and Issuances, and that the pakyaw group is intended as an informal labor sector and not a regular contractor. There may have been related COA issuances regarding this. And the principle is somewhat relevant to the creation and payment of Job Orders. Very Happy
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Re: pakyaw contract

Post by riddler on Tue Jul 07, 2009 2:33 pm

RDV wrote:
elma wrote:i have query on pakyaw contract....what is the role of BAC in pakyaw contract? can you please enlighten us on this topic? thank you very much.....

The role of the BAC is, basically:

1) to recommend to the HOPE, thru a BAC Resolution, if the original purpose in the APP is PUblic Bidding (for example), the method of procurement which is Negotiated Procurement - By Administrations;

2) If there is competition in the award of the Pakyaw labor contract, shall evaluate the eligibility of the Pakyaw labor groups participating, particularly by determining that no contractor is used by the pakyaw groups involved; and

3) Recommend to HOPE the award of contract to the winning Pakyaw labor group.

May I be clarified of the fllowing Clauses of GPPB Res. 18-2006 RDV.
RDV wrote:The role of the BAC is, basically:
x x x 2) If there is competition in the award of the Pakyaw labor contract, shall evaluate the eligibility of the Pakyaw labor groups participating, particularly by determining that no contractor is used by the pakyaw groups involved;
3) Recommend to HOPE the award of contract to the winning Pakyaw labor group.

x x x "
GPPB Res 18-2006 wrote:
" x x x x x

4.4 Where there is competition for the award of Pakyaw works, the pakyaw labor
contract shall be awarded through competitive selection with at least three (3)
Pakyaw Groups participating.
There is deemed to be a competition for the
award of pakyaw contracts when the number of laborers who registered during
the community meeting is more than what is reasonably needed for the lump
sum work required under the project. The competitive selection shall be done
on a “per-output” basis. And the winner(s) shall be determined based on what
group(s) undertake(s) to deliver the desired output at the lowest rate, either per
item of output or per lump sum work, within the required period.


4.5 For purposes of Item 4.4 hereof, the number of members per group shall be
determined by the Project Facilitator to ensure that at least three Pakyaw
Groups are organized for the competitive selection
. The determination by the
Project Facilitator of the number of members per Pakyaw Group shall be
exercised with regard to the objective of providing work to as many laborers
as possible.
x x x x x ."

Since the project has already been approved in the APP and the Local Sanggunian to be implemented as "BY-Administration". Do the process for selection, evaluation and recommendation for the award of Pakyaw Contracts need to have a BAC Resolution? Is it not the function of the Project Facilitator to select among competing Pakyaw groups as stated in Clause 4.4 of the GPPB Resolution?
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Re: pakyaw contract

Post by engrjhez® on Wed Jul 08, 2009 12:39 am

ruel wrote:
Since the project has already been approved in the APP and the Local Sanggunian to be implemented as "BY-Administration". Do the process for selection, evaluation and recommendation for the award of Pakyaw Contracts need to have a BAC Resolution? Is it not the function of the Project Facilitator to select among competing Pakyaw groups as stated in Clause 4.4 of the GPPB Resolution?
May I share my view on this.

The Project Facilitator (PF) shall be the one to declare if there exists competition as a result of excessive number of interested workers during enlistment, but it is still the BAC who shall conduct the competitive selection. In our case, the BAC issued two resolutions. First the recommendation on the use of "pakyaw" system (Negotiated Procurement) as well as its ABC as will be reflected later in the (amended) APP. Second, the recommendation of award to the lowest pakyaw bidder per output basis.

Before the conduct of selection process (by the BAC), the PF shall assist in the formation of pakyaw groups and may control the number of workers per pakyaw group (referring to that originally determined in the ABC). Very Happy
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Re: pakyaw contract

Post by riddler on Wed Jul 08, 2009 9:23 am

Ok. The Resolution kasi is silent on the role of the BAC sa evaluation, but I share your view on the 1st Resolution of the BAC for a Pakyaw Mode. ,Anyway wala namang mawwala sa atin pag pina evaluate natin sa BAC, which in this case as you mentioned in the 2nd Reso of the BAC engrjhez, we still need an ABstract of Bids to determine the lowest pakyaw bidder.
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Re: pakyaw contract

Post by engrjhez® on Wed Jul 08, 2009 9:31 am

ruel wrote:Ok. The Resolution kasi is silent on the role of the BAC sa evaluation, but I share your view on the 1st Resolution of the BAC for a Pakyaw Mode. ,Anyway wala namang mawwala sa atin pag pina evaluate natin sa BAC, which in this case as you mentioned in the 2nd Reso of the BAC engrjhez, we still need an ABstract of Bids to determine the lowest pakyaw bidder.
Yes indeed. There is no better way of summarizing the bids other than the presentation thru abstract of bids. Since negotiated procurement pa rin sya, talagang BAC ang kailangang mag-recommend sa HOPE ng LCRB in that case. Very Happy
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Re: pakyaw contract

Post by riddler on Wed Jul 08, 2009 11:26 am

Here is another excerpt from the GPPB Resolution 018-2006:

3.0 Conditions and Requirements for the use of “By Administration”

3.1 Projects undertaken by Administration shall be included in the approved Annual Procurement Plan (APP) of the procuring entity concerned. If the original mode of procurement recommended in the APP was Public Bidding but cannot be ultimately pursued, or the project to be undertaken by administration has not been previously included, the BAC, through a resolution shall justify and recommend the change in the mode of procurement or the updating of the APP to be approved by the Head of the ProcuringEntity.

3.2 To undertake projects by administration, the implementing agency must:

a. have a track record of having completed, or supervised a project, by administration or by contract, similar to and with a cost of at least fifty percent (50%) of the project at hand, and

b. own the tools and construction equipment to be used or have access to such tools and equipment owned by other government agencies. The criteria for evaluating the track record and capability of implementing agencies shall be in accordance with the guidelines to be issued by the Department of Public Works and Highways in consultation with the leagues enumerated under the Local Government Code.


What Guidelines from the DPWh shall the LGU's will follow? What criteria? I wonder bakit kailangan pa ng LGU mag secure ng Clearance from the DPWH eh Local Funds naman itong ini-implement natin, buti sana kung source out from the NG's ang fund.
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