To: DepED ARMM Regional Secretary
Regional Directors
Schools Division/City Superintendents
Regional/Division Physical Facilities Coordinators
Heads, Public Elementary and Secondary Schools

1. One of the issues and concerns raised in the implementation of DepED School Building Program (DepED SBP) by the Department of Public Works and Highways (DPWH) during the DPWH District Engineers League of the Philippines (DELP) National Mid-Year Convention in Palo, Leyte on June 15-18, 2006 was the current costing affecting the implementation of school building projects.
2. Under the CY 2006 School Building Program, the cost estimate is higher than the budget allocation compared to previous SBP for CY 2004 and CY 2005’s estimates due to price escalation, delay in the approval of the allocation list as well as the release of Special Allotment Release Order (SARO) by DBM. As a result, a number of school building projects for CY 2004 and CY 2005 remain unimplemented,
3. The following guidelines/procedures are hereby adopted in the modifications of costs of school building projects for unimplemented SBP for CY 2004 and CY 2005 being undertaken by DPWH District Engineering Offices:
   1. Projects originally programmed as “Partial Completion”, shall not be considered in these guidelines;
   2. The cost adjustment to be made shall be for Complete classroom only which has the following features:
      1. cemented floor;
      2. smooth finished (plastered) walls;
      3. painted walls, ceiling and roofing;
      4. full cathedral-type ceiling;
      5. complete set of windows;
      6. two entrances with doors;
      7. complete electrical wires and fixtures (for areas with electrical facility);
      8. roofing or weather protection;
      9. blackboard (optional); and
      10. comfort room (optional).
   3. The request for cost modification shall be made upon the initiative of the DPWH District Engineer/DepED Schools Division Superintendent with the concurrence of the Representative of the legislative district concerned;
   4. In cases where realignment shall be made, the revised list shall be submitted to DepED-Central Office for endorsement and approval of DBM;
   5. The adjusted bill of quantities (BOQ) per school concerned shall be included as attachment in the request for cost modification indicating the current prices of construction materials as prepared by the DPWH Engineer and duly concurred by the Schools Division Superintendent;
   6. The request shall be conveyed in writing citing the specific list of projects subject for cost adjustment and it shall be supported by a Certificate of Availability of Funds issued by the DPWH Accountant stating that funds for the projects are not yet obligated and are still available; and
   7. Only written request for cost adjustment, duly signed by the requesting party and other required signatories and with complete supporting documents will be processed and acted upon.
4. Wide dissemination of and compliance with this Order to all concerned is directed.

Reference: None Allotment: 1—(D.O. 50-97)

To be indicated in the Perpetual Index under the following subjects:
FUNDS
POLICY
PROGRAMS
SCHOOLBUILDINGS

DO_s2006_37