G.R. No. 208984 - WT CONSTRUCTION, INC., VS. THE PROVINCE OF CEBU.[G.R. No. 209245]

Ruling

Accordingly, the Province of Cebu conducted a public bidding for the project and, on February 22, 2006, WTCI emerged as the winning bidder for the construction of Phase I thereof which consists of the substructure of CICC. On July 26, 2006, after completing Phase I and receiving payment therefor, WTCI again won the bidding for Phase II of the project involving the adjacent works on CICC. [6] As Phase II neared completion, the Province of Cebu caused WTCI to perform additional works on the project which included site development, and additional structural, architectural, electric, and plumbing works (additional works). Cognizant of the need to complete the project in time for the ASEAN Summit, and with the repeated assurances that it would be promptly paid, WTCI agreed to perform the additional works notwithstanding the lack of public bidding. [7] In November 2006, weeks before the scheduled ASEAN Summit, WTCI completed the project, including the additional works and, accordingly, demanded payment therefor. [8] In a letter [9] dated February 8, 2007, WTCI billed the Province of Cebu the amount of P175,951,478.69 corresponding to the added cost for the site development and extended structural and architectural works. In a separate letter dated February 12, 2007, [10] WTCI billed the Province of Cebu the amount of P85,266,407.97 representing the cost for the additional electrical and plumbing works. The Province of Cebu, however, refused to pay, [11] thereby prompting WTCI to send a Final Billing [12] dated February 21, 2007 where it demanded payment of the aggregate sum of P261,217,886.66. In the letters dated March 20, 2007 [13] and September 11, 2007, [14] WTCI again reiterated its demand for payment but the Province of Cebu still refused to pay. Thus, on January 22, 2008, WTCI filed a complaint [15] for collection of sum of money before the RTC which was docketed as Civil Case No. CEB-34012. For its defense, the Province of Cebu admitted the existence of the additional works but maintained that there was no contract between it and WTCI therefor. It also claimed that the additional works did not undergo public bidding as required by Republic Act No. (RA) 9184, [16] otherwise known as the "Government Procurement Reform Act." [17] Upon joint verification by the parties, the value of the additional works was pegged at P263,263,261.41. [18] The RTC Ruling In a Judgment [19] dated May 20, 2009, the RTC ruled in favor of WTCI and ordered the Province of Cebu to pay the following amounts: ( a ) P263,263,261.41 representing the cost of the additional works, with legal interest at the rate of 12% per annum computed from the filing of the complaint on January 22, 2008 until fully paid; ( b ) P50,000.00 as attorney's fees; and ( c ) costs of suit. [20] The RTC found that there was a perfected oral contract between the parties for the additional works on CICC, and that WTCI must be duly compensated therefor under the doctrine of quantum meruit ; otherwise, t