Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
AMENDING REPUBLIC ACT NO. 386, OTHERWISE KNOWN AS THE CIVIL CODE, 
ARTICLE 1723, ON THE LIABILITY OF ENGINEERS, ARCHITECTS OR 
CONTRACTORS ARISING FROM NON-OBSERVANCE OF PLANS AND 
SPECIFICATIONS OR THE USE OF MATERIALS OF INFERIOR QUALITY  
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 infrastructure undertaking should require major repair by 
reason of defective construction. 
Third, 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 sub-contractors. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
March 23, 2021
1:13 PM
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
AMENDING REPUBLIC ACT NO. 386, OTHERWISE KNOWN AS THE CIVIL CODE, 
ARTICLE 1723, ON THE LIABILITY OF ENGINEERS, ARCHITECTS OR 
CONTRACTORS ARISING FROM NON-OBSERVANCE OF PLANS AND 
SPECIFICATIONS OR THE USE OF MATERIALS OF INFERIOR QUALITY  
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Republic Act No. 386, otherwise known as The Civil Code, Article 1723, 
is hereby amended to read as follows: 
“Art. 1723. The engineer or architect who drew up the plans and specifications for 
ANY STRUCTURE PROJECT WHETHER UNDERTAKEN BY THE GOVERNMENT 
OR PRIVATE INDIVIDUAL OR ENTITY [building] is liable for damages if within fifteen 
(15) years from the completion of the structure, the same should collapse OR 
SHOULD REQUIRE MAJOR REPAIR by reason of a defect in those plans and 
specifications, or due to the defects in the ground. The contractor AND THE 
SUBCONTRACTOR DIRECTLY HIRED BY THE FORMER ARE [is] likewise 
responsible for damages if the STRUCTURE [edifice] falls OR REQUIRES MAJOR 
REPAIR, within the same period, on account of defects in the construction or the use 
of materials of inferior quality furnished by him, due to any violation of the terms of the 
contract. If the engineer or architect supervises the construction, he shall be solidarily 
liable with the contractor and the SUB-CONTRACTOR.
IN CASE THE CONSTRUCTION OF ANY INFRASTRUCTURE PROJECT OR ANY 
PART THEREOF IS UNDERTAKEN BY A SUB-CONTRACTOR HIRED BY THE 
CONTRACTOR, THE LATTER SHALL BE DIRECTLY RESPONSIBLE AND THE 
FORMER SUBSIDIARILY RESPONSIBLE IF UPON COMPLETION THEREOF OR 
WHILE UNDER CONSTRUCTION, THE STRUCTURE FALLS OR REQUIRES 
MAJOR REPAIR WITHIN THE SAME PERIOD AND FOR THE SAME CAUSE 
ABOVESTATED. 
Acceptance of the building, after completion, does not imply waiver of any of the 
causes of action by reason of any defect mentioned in the preceding paragraph. 
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The action must be brought within ten (10) years following the collapse of the 
building. 
 
SECTION 2. Repealing Clause. – Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or 
inconsistent with, the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
 
SECTION 3. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
 
Approved,