---

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Circular No. 149, March 20, 1992 ]

AMENDING MEMORANDUM CIRCULAR NO. 57, SERIES OF 1988, ENTITLED: “PROCEDURE FOR THE COMPUTATION OF THE THIRTY PERCENT (30%) PER ANNUM CEILING IN PRICE ESCALATION FOR GOVERNMENT INFRASTRUCTURE CONTRACTS”

The procedure prescribed for the computation of the Allowable Escalation Rate under Memorandum Circular No. 57, series of 1988, shall be adopted only for infrastructure works accomplished after 20 April 1988. Accordingly, the following computations shall be followed:

I. For accomplishments made/completed prior to 1 November 1983 –

AER = Number of Months x 1%

II. For accomplishments made/completed on or after 1 November 1983 –

AER – Number of Months x 2.5%

III. For accomplishments made/ completed after 20 April 1988 –

AER = (Number of Months before 1 November 1983 x 1%) + (Number of months beginning 1 November 1983 x 2.5%)

All escalations computed prior to 1 January 1990, using the parametric formula provided under Presidential Decree No. 1594 and its Implementing Rules and Regulations shall be compared to the corresponding AER and payment of those in excess of the AER shall not be allowed, except with the prior approval of the President.

Heads of all departments, agencies and instrumentalities of the Government, including government-owned and/or controlled corporations shall take proper and necessary measures for the prompt and strict implementation of this Circular.1aшphi1

Memorandum Circular No. 57, series of 1988, is hereby amended accordingly.

This Memorandum shall take effect immediately.

Done in the City of Manila this 20th day of March, in the year of Our Lord, nineteen hundred and ninety-two.

By Authority of the President:

(Sgd.) FRANKLIN M. DRILON
Executive Secretary

The Lawphil Project - Arellano Law Foundation

---