Flashcards Studio

A municipal government in Metro Manila signs a contract with ConstructSource, Inc. to supply 50 electricians for an 8‑month upgrade of city electrical infrastructure. ConstructSource hires and pays its own workers, furnishes uniforms and PPE, and uses its own on‑site supervisor. The City’s Infrastructure Management Office defines project milestones, approves installation plans, and may request design changes, but does not direct the electricians’ day‑to‑day tasks or assign tasks to ConstructSource personnel. ConstructSource invoices monthly and handles payroll taxes for its workers. The contract includes a provision for an option to extend for an additional 4 months subject to funding. Are these arrangements permissible contracting, or Not Covered under the DOLE guidelines on contracting and subcontracting? Briefly explain the governing doctrine, distinguish the essential criteria, and apply to the facts.