Republic of the Philippines
DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
OFFICE OF THE SECRETARY
Manila
&^COHG ,'L\,I,I^S
JAM 1 2 2024
DEPARTMENT ORDER) SuBJECT : Breakdown of the Allocation of the
) Authorized Deductions from Project
) Related Expenses to be used for
No. 05 ) Engineering and Administrative
SERIES OF 2024 ) Overhead (EAO) and MOOE under FY
2024 GAA, DPWH Budget
ch ,\,1\q4
Section 18, Special Provisions of the General Appropriations Act (GAA) FY 2024, states that:
18. Project Related Expenses. For infrastructure projects costing more than One Mil/ion
Pesos (P1,000,000), the DPWH is authorized to deduct, but not to exceed the fo/lowing
percentages of the project cost, to be used for: (i) EAO expenses and (ii) MOOE:
a. three and a half percent (3.5%) for releases to the Central Office;
b. two and a ha/f percent (2.5%) for re/eases to the Regional Offices (ROs);
c. two percent (2%) for re/eases to the District Engineering Offices (DEOs);
d. one percent (1%) for infrastructure projects under the Basic Infrastructure Program
undertaken by the Central Office, ROs and DEOs; Provided, That the one percent (1%)
EAO shall be given only to the imp/ementing unit, regard/ess where the fund was released;
Or
e. one-half of one percent (0,5%) for infrastructure projects of other agencies undertaken by
the Centra/ Office, ROs or DEOs, un/ess oth6rvise provided in the Special Provision of the
agency concerned.
For EAO expenses, the same sha// be limited to: (i) adm.inistrative overhead including the
hiring of individuals engaged through job orders or contracts of service or such other
engagement of personne/ without any emp/oyer-employee relationship; (ii) pre-construction
activities after detailed engineering; (iii) construction project management; (iv) testing and
qua/ity contro/; (v) acquisition, rehabilitation and repair of equipment and parts; and (vi)
contingencies in re/ation to pre-construction activities. The EAO expenses shal/ be treated or
booked-up as capi.ta/ized expenditures and form part of the project cost.
Disbursements or expenditures by DPWH in violation of the above requirements shall be void
and shal/ subject the erring officia/s and emp/oyees to discip/inary actions in accordance with
Section 43, Chapter 5, and Section 80, Chapter 7, Book VI of E.O. No. 292, and to appropriate
crimina/ action under existing pena/ /aws. (CONDITIONAL IMPLEMENTATION-
Message, December 20, 2023, Vo/ume I-8, pages 782-783, R.A. No. 11975)
D.O. No. OE_ Series of 2024
Breakdown of the Allocation of the Authorized Deductions from Project-Related
Expenses to be used for EAO and MOOE under FY 2024 GAA, DPWH Budget
Page 2 of 2
Pursuant to the foregoing, the breakdown of allocation of the authorized Project Related
Expenses from Project Cost is as follows:
.
For Locally-Funded Projects Released to Central Office
Percentage of Deductions/ Retentions from Project Cost
Implementing Office CO RO DEO Total
Central Office/UPMO -Implemented 2.000/o 0.50% 1.000/o 3.50%
RO -Implemented 0.50% 2.000/o 1.00% 3.50%
DEO -Implemented 0.50% 0.500/o 2.50% 3.50%
For Directly Released to RO and DEO
Percentage of Deductions/ Retentions from Project Cost
Implementing Office RO DEO Total
RO -Implemented 2.50% 2.50%
DEO -Implemented 2.00% 2.00%
The Secretary shall approve all requests for project-related expenses on EAO and authorize
the release of funds to the concerned implementing office.
This Order supersedes Department Order No. 12 series of 2023, and shall take effect
immediately.
Please be guided accordingly.
Departmen5ff°,fc:uo?'!:oY¥£r5:e:anrdyH'ghvvays
1111111111111111111111111111111111111111
WIN4XY00145
