Philippine Science High School-Cagayan Valley Campus v. Pirra Construction Enterprises

Summary

This commercial construction dispute involved two government building projects where contractor PIRRA sought payment for completed work and damages for alleged wrongful contract termination by government school PSHS. The Supreme Court affirmed that PSHS must pay for substantially completed Project A work under Civil Code Article 1234, rejecting government claims that COA inspection findings justified payment refusal. While upholding valid termination of Project C due to contractor's unauthorized work suspension, the Court applied quantum meruit principles requiring payment for completed work to prevent unjust enrichment. The decision reinforces that government entities cannot escape contractual payment obligations to private contractors, emphasizing justice and equity in public construction contracts while respecting specialized construction arbitration expertise.