DR. RUFINO O. ESLAO, in his capacity as President of Pangasinan State University, vs. THE COMMISSION ON AUDIT.
- G.R. Number: G.R. No. 89745
- Promulgated: 1991-04-08
- Ponente: Gancayco, J.
Doctrine
A contractor may recover on quantum meruit for public works actually performed and benefitting the public even absent a specific appropriation where substantial compliance and circumstances warrant.
Substantial compliance with COA requirements may suffice under special circumstances when the work has been authorized and acknowledged by the proper agency.
Denying payment for substantially completed public works in use would unjustly enrich the government; equity demands compensation on quantum meruit.
Facts
The petition raises the validity of a public works project and the contractor's right to compensation.
The facts are undisputed.
The two projects are about 95% complete and the buildings are now used by the university.
The Ministry of Public Works impliedly authorized and later expressly acknowledged the work and recommended payment twice.
Issues
Whether the contractor is entitled to compensation for work done on the public works projects despite absence of a specific covering appropriation.
Ruling
The petition is GRANTED; the COA decision and resolution are REVERSED and SET ASIDE. COA is directed to determine total compensation on a quantum meruit basis for the completed portions and to allow payment immediately after that determination.
Court finds petitioner entered into the contracts in good faith and should recover on quantum meruit since the works benefitted the public and are substantially complete and in use.
Keywords
G.R. No. 89745, Commission on Audit (COA), public works project, right of the contractor to compensation, conditional contract, P.D. No. 1594, implementing rules of P.D. No. 1594, disallowance, negotiated contract, exceptional cases where time is of the essence, legal grounds for disallowance, failure to award the contract after competitive public bidding, contract approval, resident auditor, Department of Budget and Management (DBM), Advice of Allotment, december, approval, contracts, million