SC backs DPWH’s move over awarding of contract

The Supreme Court has ruled that Cebu-based officials of the Department of Public Works and Highways made the right decision to disqualify the lowest bidder for a flyover project, and award it instead to a contractor that had a higher bid.

The SC’s first division, presided by Chief Justice Reynato Puno, said that mere submission of the lowest bid does not automatically entitle that bidder to get the contract.

The bid must still undergo evaluation and post qualification before it would be declared the lowest responsive bid, said the SC ruling.

The flyover project in question was the one built on the intersection of Archbishop Reyes Avenue and Escario Street.

Records showed that when DPWH put the project to public bidding in 2002, two contractors—WT Construction, Inc. and Chiara Construction—participated as a joint venture.

The WT and Chiara joint venture tendered a bid of P52.7 million while its competitor, WTG Construction bid for P61.9 million. The DPWH however awarded the contract to WTG.

This prompted WT-Chiara venture to raise the case to the SC, petitioning the court to declare illegal the move of DPWH officials in awarding the project to WTG. Its contention was that it had the lowest bid so it was entitled to the award for the project.

The SC, however, ruled that the bid must still undergo evaluation and post qualification to determine whether or not it is the most advantageous to the government.

The SC noted that petitioners’ technical and financial bid envelopes did not contain the required license from the Philippine Construction Accreditation Board, but only a mere application for such license.

WT-Chiara tried vainly to argue the case, saying the special license was necessary only after the contract is awarded.

The SC disagreed, saying the special license from PCAB, for petitioners’ joint venture, and a surety bond were requirements for a bid to be declared the lowest bidder and get the project contract eventually.  — Rene U. Borromeo/RAE