From Budget to Bulldozers: The Journey of a Flood Control Project

Yasser Aureada
4 days ago
3 min read

In Part 1 of this series, we explained the legal framework of government bidding under Republic Act No. 9184 (Government Procurement Reform Act) and the additional safeguards introduced by Revenue Regulations (RR) No. 17-2024.

Today, we look beyond the bidding stage to understand the entire journey of a government project—using flood control systems as an example. By examining each stage, we see how public funds move from planning tables to construction sites, and how the law provides safeguards at every step.

Stage 1: Planning and Identification

Every public project begins with planning. Agencies such as the Department of Public Works and Highways (DPWH) or local government units identify priority infrastructure needs to address community concerns such as flooding.

Technical feasibility studies and engineering assessments are conducted.
Projects are listed in the Annual Procurement Plan (APP), which consolidates an agency’s procurement requirements for the year.
Section 7 of the RA 9184 IRR requires that all procurement must be included in an APP before proceeding.

Stage 2: Budgeting and Legislative Approval

No project can begin without funding authorization. Project costs pass through the national budget cycle:

Agencies submit proposed budgets, including infrastructure priorities.
The Department of Budget and Management (DBM) reviews and consolidates proposals.
Congress enacts the General Appropriations Act (GAA), which authorizes funding for the year.

This stage ensures that projects are subject to legislative oversight and public debate.

Stage 3: Publication of the Project

Once funds are approved, the procuring agency prepares bid documents and begins procurement.

An Invitation to Bid is posted on the Philippine Government Electronic Procurement System (PhilGEPS), the agency’s website, and, when applicable, in newspapers.
Bid documents include project scope, the Approved Budget for the Contract (ABC), eligibility requirements, and timelines.

This marks the formal start of competitive procurement under RA 9184.

Stage 4: Bidding and Awarding

The bidding process follows the procedures under RA 9184:

Contractors submit technical and financial proposals in two sealed envelopes.
The Bids and Awards Committee (BAC), established under RA 9184, conducts a public bid opening.
The Lowest Calculated Responsive Bid (LCRB)—both compliant and cost-effective—is identified after evaluation and post-qualification.
The winning bidder receives a Notice of Award, signs the contract, and is issued a Notice to Proceed.

This ensures transparency, competitiveness, and accountability.

Stage 5: Implementation and Monitoring

Once awarded, the project proceeds to construction.

Contractors mobilize equipment, manpower, and materials.
The agency monitors progress through project engineers and inspectors.
Importantly, RA 9184 requires the presence of observers from the Commission on Audit, accredited NGOs, and private sector representatives to enhance transparency.
Citizens may also review project details through PhilGEPS and local monitoring initiatives.

Stage 6: Payment and Tax Compliance

Contractors are typically paid in tranches based on milestones. However, final settlement requires additional safeguards:

Under RR 17-2024, contractors must secure an updated BIR tax clearance before final payment or retention money is released.
Failure to comply allows the government to suspend payment or enforce a tax lien over retained amounts.
This regulation strengthens earlier requirements under Executive Order 398 (2005), which mandated tax clearance for bidding participation. RR 17-2024 extends compliance to the project’s conclusion.

Why Understanding the Journey Matters

For citizens, understanding the life cycle of a project explains why each stage exists:

Planning ensures necessity and feasibility.
Budgeting requires legislative approval.
Publication guarantees transparency.
Bidding secures fairness and value for money.
Monitoring protects against substandard delivery.
Tax compliance reinforces fiscal responsibility.

Legal Insight

The life cycle of a public project involves more than ground-breaking and construction. It is a sequence of legal and procedural steps governed by RA 9184, reinforced by fiscal safeguards under RR 17-2024. Together, these measures aim to ensure that taxpayer funds are allocated and spent in a manner that is transparent, competitive, and accountable.

By understanding this process, citizens are empowered to monitor public projects from the planning stage to final payment—ensuring that flood control and other infrastructure serve their intended purpose.

Next in the series: Why Bidding Matters: Safeguarding Billions in Public Funds