FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENAT.f 
S. No. 
~qj82 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Civil Code, Article 1723, declares the liability for damages in any structure by 
reason of defects in its construction or use of inferior materials. The limited coverage of this 
provision allows the engineer, architect or contractor to avoid liability arising from non-
observance of plans and specifications or the use of materials of inferior quality. 
This bill seeks to expand its coverage with the following proposed amendments: 
First, unlike the present provision, which includes only buildings as subject matter, this 
bill covers all kinds of infrastructure projects. 
Second, the liability for damages shall not arise not only in case the structure should 
collapse, but also where the infrastructury undertaking should require major repair by reason of 
defective construction. 
Thirdly, this bill proposes to hold the contractors directly responsible for defective 
construction undertaken by sub-contractors. The sub-contractors shall merely assume subsidiary 
liability, This is to encourage contractors to be more cautious in their selection of subcontractors. 
This bill is a product of the' public hearings conducted by the Committee on 
Constitutional Amendments, Revision of Codes and Laws during the Tenth Congress 1 
1 This bill was re-filed during the Thlrteenth Congress, First Regular Session. 
1 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
, SENA-1J3 
'0 
jliJG 11 
S. No. 
~;:s82 
:;1 !'If(~Fi'WI\!W @ 
_____ _ 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT AMENDING REPUBLIC ACT NO. 386, 
2 
OTHERWISE KNOWN AS THE CIVIL CODE, ARTICLE 1723, 
3 
ON THE LIABILITY OF ENGINEERS, ARCHITECTS OR CONTRACTORS ARISING 
4 
FROM NON-OBSERVANCE OF PLANS AND SPECIFICATIONS OR 
5 
THE USE OF MATERIALS OF INFERIOR QUALITY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
6 
SECTION 1. Republic Act No. 386, otherwise known as the The Civil Code, Article 
7 
1723, is hereby amended to read as follows: 
8 
Art. 1723. The engineer or architect who drew up the plans and 
9 
specifications for ANY STRUCTURE PROJECT WHETHER UNDERTAKEN 
10 
BY THE GOVERNMENT OR PRIVATE INDIVIDUAL OR ENTITY [building] 
11 
is liable for damages if within fifteen (15) years from the completion of the 
12 
structure, the same should collapse OR SHOULD REQUIRE MAJOR REP AIR 
13 
by reason of a defect in those plans and specifications, or due to the defects in the 
14 
ground. The contractor AND THE SUBCONTRACTOR DIRECTLY HIRED BY 
15 
THE FORMER ARE [is] likewise responsible for damages if the STRUCTURE 
16 
[edifice] falls OR REQUIRES MAJOR REPAIR, within the same period, on 
17 
account of defects in the construction or the use of materials of inferior quality 
18 
furnished by him, due to any violation of the terms of the contract. If the engineer 
19 
or architect supervises the construction, he shall be solidarily liable with the 
20 
contractor and the SUB-CONTRACTOR. 
21 
IN CASE THE CONSTRUCTION OF ANY INFRASTRUCTURE 
22 
PROJECT 
OR 
ANY 
PART 
THEREOF 
IS 
UNDERTAKEN 
BY 
A 
23 
SUBCONTRACTOR HIRED BY THE CONTRACTOR, THE LATTER SHALL 
1 


• 
1 
BE DIRECTLY RESPONSIBLE AND THE FORMER SUBSIDIARILY 
2 
RESPONSIBLE IF UPON COMPLETION THEREOF OR WHILE UNDER 
3 
CONSTRUCTION, THE STRUCTURE FALLS OR REQUIRES MAJOR 
4 
REPAIR WITHIN THE SAME PERIOD AND FOR THE SAME CAUSE 
5 
ABOVESTATED. 
6 
Acceptance of the building, after completion, does not imply waiver of 
7 
any of the causes of action by reason of any defect mentioned in the preceding 
8 
paragraph. 
9 
The action must be brought within ten (10) years following the coIIapse of 
10 
the building. 
11 
SECTION 2. Repealing Clause. - Any law, presidential decree or issuance, executive 
12 
order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
13 
with the provision of this Act is hereby repealed, modified, or amended accordingly. 
14 
SECTION 3. Effectivity Clause. - This Act shaII take effect fifteen (15) days after its 
15 
publication in at least two (2) newspapers of general circulation. 
Approved, 
2