Authority of OIC or Administrator to Sign Contracts for the Local Chief Executive in the Philippines

Overview

In Philippine local governments, the power to enter into and sign contracts is fundamentally lodged in the Local Chief Executive (LCE)—the Governor, City Mayor, or Municipal Mayor. This article clarifies when, how, and to what extent an Officer-in-Charge (OIC) or a Local Administrator may validly sign contracts on behalf of the LCE, and what safeguards should be observed so contracts withstand audit, legal, and procurement scrutiny.

Core Legal Architecture

  1. Local Government Code (LGC) of 1991 (R.A. 7160)

    • Representation & Contract Power. Sections on the Governor (Sec. 465), City Mayor (Sec. 455), and Municipal Mayor (Sec. 444) empower the LCE to “represent the LGU in its business transactions and sign on its behalf all bonds, contracts and obligations,” subject to Sangguniang authorization where required.
    • Temporary Vacancies & Substitution. Section 46 distinguishes Acting capacity from OIC designation and governs who may exercise LCE powers during absence, leave, suspension, or other temporary incapacity.
    • Local Administrator. Section 480 defines the Local Administrator as an appointive official whose functions are primarily managerial and coordinative, not inherently policy-making or contract-signing—unless duly authorized.

  2. Government Procurement Reform Act (R.A. 9184) and its IRR

    • The LCE is the Head of the Procuring Entity (HOPE) for LGUs. The HOPE may delegate certain acts to an “authorized representative,” but delegation must be express, written, and consistent with the LGC and any Sangguniang requirements.

  3. General Administrative & Audit Principles

    • Ultra Vires & Authority. Contract validity hinges on the signer’s actual authority at the time of signing. Absent authority, contracts risk being void or disallowed in audit.
    • Sangguniang Authorization. Many contracts (especially long-term, high value, or those disposing of or encumbering property/funds) require a prior resolution/ordinance authorizing the LCE to enter into the contract and often identifying the counterparty, project, amount, and terms.

Acting LCE vs. OIC: What’s the Difference?

Status When it Applies Powers Over Contracts
Acting Governor/Mayor When the LCE is temporarily incapacitated (e.g., leave, travel, suspension) beyond the threshold set by law, the Vice Governor/Vice Mayor (or next in line by law) acts as LCE. Generally co-extensive with the LCE’s powers for the period, including contract signing subject to the same Sangguniang authorizations and procurement rules.
Officer-in-Charge (OIC) When the LCE designates in writing a temporary caretaker for short, specific periods (commonly day-to-day, administrative continuity). Limited to administrative and routine acts unless the written OIC designation expressly confers contract authority and all LGC/Sangguniang preconditions are satisfied. OICs are not presumed to wield full LCE powers.

Key takeaway: Acting officials step into the LCE’s shoes; OICs keep the office running. Contract-signing by an OIC is exceptional, not automatic.

May a Local Administrator Sign Contracts?

Yes, but only if duly and properly authorized. The Local Administrator’s default role is managerial—coordinating, supervising implementation, and ensuring continuity. Signing a contract is a representation act of the LGU that belongs to the LCE. Therefore, a Local Administrator may sign only when:

  1. There is a valid Sangguniang authorization for the LCE to enter into the specific contract (or class of contracts), and
  2. The LCE issues a written delegation (e.g., Office Order, Special Authority/SPA) naming the Administrator as authorized representative to sign that contract (or well-defined class of contracts), and
  3. The delegation is consistent with law and the Sangguniang authorization (no expansion or deviation), and
  4. Procurement/other sectoral laws (e.g., PPP code, BOT rules, leasing/disposal rules, joint venture guidelines) are complied with.

Absent any of these, the Administrator’s signature is vulnerable to audit disallowance or nullity challenges.

Anatomy of a Valid Authorization Chain

A robust paper trail typically looks like this:

  1. Sangguniang Authorization

    • A Resolution/Ordinance authorizing the LGU to enter into a contract with a named counterparty (or via a defined process), identifying the project, ceiling amount, funding source, and key terms.
    • Some LGUs pass a general delegation ordinance that allows the LCE to sub-authorize representatives for routine transactions up to set thresholds.

  2. LCE Special Authority (to a person)

    • A written instrument (Office Order, Special Power of Attorney/Authority) from the LCE naming the authorized representative (e.g., Local Administrator or OIC) to sign the specific contract, referencing the Sangguniang authority and mirroring its scope.

  3. Procurement/Process Documents (if applicable)

    • Complete R.A. 9184 trail: BAC resolutions, post-qualification, Notice of Award (NOA), Approval of Contract (AOC), and Notice to Proceed (NTP)—each signed by the HOPE or authorized representative per the delegation record.

  4. Signature Block

    • Use “By authority of the Mayor/Governor” or “For and on behalf of the [LGU]”, referencing the specific authority (e.g., “per Sangguniang Bayan Resolution No. ___, Series of ___; Office Order No. ___ dated ___”).

Practical Rules of Thumb

  1. If you’re “Acting” LCE: You can sign contracts within the same limits and prerequisites as the LCE. You still need Sangguniang authority where the LCE would have needed it.

  2. If you’re an OIC:

    • You cannot assume full LCE powers by default.
    • You may sign only if: (a) the OIC designation expressly grants contract-signing power for the identified matter; (b) the Sangguniang authorization exists; and (c) all applicable procedures are met.
    • Avoid policy-shifting or long-term contracts unless the authority is crystal-clear.

  3. If you’re the Local Administrator:

    • Ensure there’s both a Sangguniang authorization and a specific LCE written delegation naming you as signer.
    • Keep within amount/subject limits stated in the delegation. Do not “back-solve” authority after signing.

  4. Non-delegable or sensitive powers:

    • Veto, appointments (with narrow exceptions), discipline/removal, and other high-discretion acts are not presumed delegable to OICs/Administrators. When in doubt, do not sign.

  5. Ratification after the fact:

    • While some defects can be cured by formal ratification, lack of authority at the time of signing is a serious defect, often leading to COA disallowances and potential contract invalidity. Don’t rely on after-the-fact fixes.

Procurement Nuances (R.A. 9184)

  • HOPE Delegation. The LCE, as HOPE, can delegate signatory functions (e.g., NOA, contract, NTP) to an authorized representative—including an Administrator or OIC—if the delegation is written, prior, and within the LGC framework.
  • Thresholds & Clarity. Delegations should set amount caps, transaction types, and document lists the representative may sign.
  • Consistency. The delegation must match the Sangguniang authorization and the BAC resolutions. Misalignment is a red flag in audit.

Common Pitfalls That Trigger Disallowances

  1. Signing without Sangguniang authority where one is required.
  2. OIC/Administrator signs but the LCE never issued a specific, written delegation.
  3. Authority documents are vague, undated, or do not identify the contract, counterparty, amount, or legal basis.
  4. Post-facto ratification attempted to cure an authority gap.
  5. Signature blocks omit “by authority of…” and document references, muddling the record.
  6. Term-altering changes (price, scope, period) made by an OIC/Administrator without new authority.

Checklist Before an OIC/Administrator Signs

  • Is there a Sangguniang resolution/ordinance authorizing the LCE to enter into the contract?
  • Does the LCE’s written delegation (SPA/Office Order) name the signer, specify the contract, and state limits?
  • Do procurement records (if any) identify the signer as the HOPE’s authorized representative?
  • Are the terms within the authorized scope (amount, duration, purpose)?
  • Is the OIC designation clear on duration and powers (if signer is the OIC)?
  • Are signature blocks properly formatted with references to authority documents?
  • Has Legal/Accounting/COA liaison cleared the file?

Suggested Clauses & Signature Formats

A. Sample Sangguniang Resolution Excerpt

“Authorizing the Municipal Mayor to enter into and sign, for and on behalf of the Municipality of , a Contract with ______ for ______ in the amount of ₱, chargeable against ______, under the terms attached hereto; and authorizing the Municipal Mayor to designate an authorized representative to sign the contract and related procurement documents.”

B. LCE Special Authority (to Administrator/OIC) Excerpt

“Pursuant to Sangguniang Bayan Resolution No. ___, s. ___, I hereby designate [Name], [Position: Local Administrator/OIC], as my Authorized Representative to sign the Contract for [Project/Transaction] with [Counterparty], including the Notice of Award, Contract, and Notice to Proceed, up to ₱[amount], subject to all laws, rules, and the terms of said Resolution.”

C. Signature Block

[NAME] Local Administrator / Officer-in-Charge By authority of the [Mayor/Governor] per Office Order No. ___ dated ___ and Sangguniang [Bayan/Panlungsod/Panlalawigan] Resolution No. ___, s. ___.

Frequently Asked Questions

1) Can an OIC sign during the Mayor’s 3-day trip? Only if the OIC designation expressly includes contract-signing for the specific transaction, and the Sangguniang authority exists. Otherwise, limit to routine administration.

2) Our Administrator signed a lease without a resolution. Is it valid? Risky. If a resolution was required, the signature may be unauthorized, exposing the LGU to disallowance and the contract to challenge. Seek legal review and consider proper ratification before performance—recognizing it may not fully cure the defect.

3) Does “general authority to sign documents” cover contracts? Not safely. Use specific authority that identifies the contract, counterparty, amount, and legal basis.

4) If the Vice Mayor is Acting Mayor, does he/she still need a resolution? Yes—the office’s powers are the same as the LCE’s for the period; the preconditions (like Sangguniang authorization) do not disappear.

5) Can the HOPE delegate everything under R.A. 9184? Not everything. Delegation must be express and reasonable, and cannot conflict with the LGC or Sangguniang control over contracts.

Bottom Line

  • Default: Contract-signing is for the LCE.
  • Acting LCE: May sign with the same prerequisites the LCE must observe.
  • OIC/Administrator: May sign only with explicit, written authority from the LCE and with Sangguniang authorization where required, and in harmony with procurement and sectoral rules.
  • Documentation is destiny: Clear, prior, specific authority documents are your best defense against nullity and disallowance.

One-Page Action Template (for Offices)

  1. Get Sangguniang authorization → 2) Issue LCE Special Authority naming signer → 3) Align BAC/HOPE documents → 4) Use proper signature block with citations to authority → 5) Keep a clean, indexed file for COA/legal review.

If you want, I can turn this into a fill-in-the-blanks kit (resolution, SPA, office order, signature blocks) tailored to your LGU.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

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