Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

13793

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT

STRENGTHENING THE CONSTRUCTION INDUSTRY, CREATING THE PHILIPPINE
CONSTRUCTION INDUSTRY DEVELOPMENT AUTHORITY AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

The proposed measure seeks to strengthen and modernize the country's
construction industry by creating a new entity to be named the Philippine Construction
Industry Development Authority or PhilCIDA.

It is common knowledge how vital and promising the construction industry is to our
economy. In 2005 alone, it accounted for 43.0 percent of the country's Gross Fixed Capital
Formation and 4.2 percent of Gross Domestic Product (GDP). A heavy employment-
generating sector, it was able to create 1.7 million jobs or approximately 5.3% of the
country's total in the same year. It provides the basic physical, industrial, commercial and
social infrastructure facilities necessary for growth and sustained development of different
sectors of the economy such as housing, manufacturing, commerce, transport, agriculture,
services and other various industries. With a modem and efficient construction industry,
vital infrastructure facilities can be provided and at the same time maintained to enhance
the nation’s ability to improve the living conditions of our countrymen.

There seems to be no doubt in the industry's capacity to generate much-needed
export receipts and more importantly, create overseas jobs for Filipino workers. Filipino
engineering and construction firms have succeeded in taking their businesses to the Middle
East market since the 1970s. The sector earns roughly US$25 million a year from
international projects and generates thousands of jobs. If modernized and made more


competitive, the industry can easily triple its global export receipts and its job-generating
capacity to unprecedented levels.

Despite its potentials, the industry has failed to sustain its growth parallel with the
growth of the population. Moreover, the nation's expansion requirements have been
outpaced by several countries in Southeast Asia which have continuously upgraded their
industry capacities and the skills of their construction workers and engineers. With the
government's guiding help, our construction industry can closely compete with our
neighboring countries like Thailand, Indonesia and Malaysia. What is needed, as proposed
in this bill, is for an agency to be created to be able to strategize how to position the industry
given the reality of regional and global integration.

The existence of the Construction Industry of the Philippines (CIAP), given its limited
functions, personnel and resources, was unable to address the complexity of problems and
emerging challenges affecting the growth and development of the Philippine construction
industry. Further, the country is having a difficult time producing enough construction
engineers, designers and skilled workers, a great number of whom are being lured by
foreign construction companies. To further complicate matters is the industry’s insufficiency
in addressing the need to upgrade the skills and adequately protecting a large number of
community-based construction workers.

The bill, therefore, seeks to address the aforementioned multi-faceted problems and
challenges facing the construction industry through the:

(a) promotion of the upgrading, modernization and competitiveness of the
construction industry through the creation of the Philippine Construction Industry
Development Authority (PhilCIDA); and

(b) advancement of an integrated human resources development for the industry,
covering the skills, health and safety and protection concerns of construction
workers in the formal and informal sectors.

By enhancing the competitiveness of the industry with the end in view of raising the
standards of construction work, upgrading the skills of workers through training, promoting
occupational safety and health standards at the workplace and fostering greater public-
private partnership in construction industry development, the country is assured of export
revenues and job opportunities which it needs to uplift the lives of a majority of our people.

For these reasons, the passage of this bill is earnestly recommended

DIOSDADO PAGAL ARROYO GLORIA MACAPAGAL ARROYO
Second District, Camarines Sur ‘Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No._ 1379

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
STRENGTHENING THE CONSTRUCTION INDUSTRY, CREATING THE PHILIPPINE
CONSTRUCTION INDUSTRY DEVELOPMENT AUTHORITY AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as "The Philippine
Construction Industry Competitiveness Act of 2013."

SECTION 2. Declaration of Policy. — Recognizing the potential of the
construction industry to trigger and sustain growth of the economy and employment
through a program of integrated and balanced development, it shall be the policy of the
State to encourage, promote, support and enhance the orderly growth and development
of the construction industry in the Philippines. It shall also be the policy of the State to
promote the welfare and hone the talents and skills of all workers in the construction
industry so that they can ably contribute to the competitiveness of the industry while
raising their economic and social well-being

SECTION 3. Objectives. - Towards this end, the State shall encourage the
development of this industry by:

a. Creating a business environment conducive to the continuous growth of the
construction industry;


b, Establishing an adequate support structure to enhance the viability of the
construction industry;

cc. Encouraging the continuous upgrading of skills, qualifications and
competitiveness of the workers, both formal and informal, in consonance with
national interest and public safety;

d. Promoting the involvement of workers’ organizations in the construction
industry in the delivery of skills training services; and

e. Providing occupational safety and health and social protection programs for
the construction workers in the context of social partnership, higher productivity
and competitiveness of the construction industry.

SECTION 4. Scope and Coverage. - This Act shall cover all persons, natural or
juridical, who are involved in the construction industry such as, but not limited to,
construction constructors and construction sub-contractors, specialty contractors,
“pakyaw’ contractors, designers, consultants, manufacturers, suppliers and dealers of
construction materials, project managers, supervisors, construction workers,
construction project owners whether public or private, building officials, and industry
associations, councils and organizations.

SECTION 5. Creation of Philippine Construction industry Development Authority.
= It is hereby created the Philippine Construction Industry Development Authority
(PhilCIDA) which shall exercise corporate, developmental and regulatory powers and
functions through a Board of Directors composed by the Secretary of Trade and
Industry as Chairman, and the Secretaries of Public Works and Highways, Interior and
Local Government, Transportation and Communications, Labor and Employment, the
President of the Philippine Constructors Association, Inc. (PCA), Director-General of the
Technical Education and Skills Development Authority, and five (5) private sector
members composed of one permanent representative each from the construction
contracting sector, consulting sector, materials manufacturers/suppliers, construction
workers, and project owners, to be appointed by the Chairman upon the nomination of a
council to be composed of the PCA, Confederation of Filipino Consultants (COFILCO),
Subdivision and Housing Developers Association (SHDA), Philippine Chamber of
Commerce and Industry (PCCI), Association of Carriers and Equipment Lessors
(ACEL), and the Association of Construction and Informal Workers (ACIW).

The Construction Industry Authority of the Philippines (CIAP), Philippine
Overseas Construction Board (POCB), Philippine Contractors Accreditation Board
(PCAB), and Philippine Domestic Construction Board (PDCB), and Construction
Manpower Development Foundation (CMDF) are hereby abolished and all their funds,
records, personnel and properties are hereby transferred to the Authority. However, the
Construction Industry Arbitration Commission (CIAC) except for its personnel, shall
continue to exist as an independent body which shall be attached to the Authority for
purposes of policy and program coordination.


SECTION 6. Powers, Duties and Objectives of PhilCIDA. ~ The Philippine
Construction Industry Development Authority is hereby vested with powers and
authority over the Philippine construction industry. It is tasked to develop and promote
the viability, stimulate and accelerate the development, growth, improvement,
expansion of the construction industry of the Philippines, and to regulate and supervise
the business and exercise of profession in the construction industry. For this purpose,
the Authority is vested with the following powers and duties

a. Formulate and implement policies, standards and best practices for the
construction industry, including the formulation, issuance and enforcement of
policies, guidelines, rules and regulations for licensing, registration, and/or
accreditation of contractors, consultants, and other construction service
providers, to carry out the provisions of this Act;

b. Develop a comprehensive and long-term development plan to ensure the
continued viability of the local construction industry based on sustained economic
growth and for a more equitable distribution of domestic and overseas
opportunities for, Filipino enterprises and workers, in conformity with the
constitutionally-mandated goals of national economy;

c. Design and adopt strategies to accelerate the development of the construction
industry, including but not limited to, measures for upgrading professional,
technical, and financial capabilities of all workers;

d. Develop a comprehensive skills training program to improve the
competitiveness and efficiency of the construction workers;

e. Regularly monitor, research and study the construction industry in the
Philippines and in other countries, to establish an updated database of
construction workers, contractors, etc, identify and address problems, enhance
growth, develop programs, recommend, support and implement policies,
legislation and other measures for the optimum development of the construction
industry;

f, Prescribe and issue policies, rules and regulations, circulars and guidelines
pertinent to its powers and functions;

g. Develop programs and strategies for the optimum use of local construction
materials and for the improvement of their quality, competitiveness and
efficiency;

h. Establish a compensation plan, position classification system, and qualification
standards for its officers and staff based on a comprehensive job analysis and
audit of actual duties and responsibilities;


i. Make a periodic review of its organizational and operational capability, and
effect a re-structuring, upgrading, or the creation of plantilla positions and
acquisition of appropriate resources as may be deemed necessary. For this
purpose, the Authority may use its income, subject to government auditing rules
and regulations:

j. Develop and maintain a construction industry information system that is
efficient and accessible to the public;

k. Establish a funding mechanism to carry out its programs and activities,
including the provision of resources to accredited and/or designated government
agencies in the implementation of the Authority's functions;

|. Assess and collect fees and other assessments, contributions; receive grants
to promote and develop the construction industry; administer its funds, including
grants received; and provide incentives under such guidelines approved by the
Board;

m. Approve the annual budget of the Authority;

n. Adopt, alter and use a corporate seal; enter into contacts, lease, own or
otherwise dispose of personal or real property; sue and be sued; and otherwise
carry out its duties and functions as provided for in this Act;

0. Submit an annual report of its activities to the Secretary of Trade and Industry;
and

p. Adopt measures for the enforcement of this Act and other relevant laws,
statutes, rules and regulations and perform such other functions necessary to
achieve its objectives, properly exercise its authority and effectively discharge its
functions and duties.

SECTION 7. Organization. — The Authority shall be attached to the Department
of Trade and Industry for policy and program coordination. It shall have a General
Manager to be appointed by the Secretary of Trade and Industry upon the
recommendation of the Board of Directors. The General Manager shall be the Chief
Executive Officer of the Authority and is responsible to the PhilCIDA Board of Directors.
He must be a natural-bom citizen of the Philippines, at least thirty-five (35) years of age
on the day of his appointment, holder of a college degree with at least ten (10) years of
experience, relevant to the construction industry, and of proven competence, integrity,
probity and independence. He shall perform such functions and duties as may be
prescribed by the Board.

For purposes of this Section, the Board shall organize the Authority by creating
departments, committees and such other offices as it may deem necessary for the


Proper exercise of its powers and the efficient performance and discharge of its
functions, duties and responsibilities.

The Authority shall provide for an organization for its officers and staff. All
positions in the Authority shall be permanent and governed by a compensation and
Position classification system and qualification standards based on a comprehensive job
analysis and audit of actual duties and responsibilities. The compensation plan shall be
subject to the periodic review by the Authority no more than once every two (2) years
without prejudice to yearly merit reviews or increases based on productivity and
Performance. The Authority shall be exempt from the provisions of the Salary
Standardization Law and the Attrition Law.

Subject to Civil Service laws, rules and regulations, no officer or employee of the
Authority shall be removed or suspended except for cause, as provided for by law

SECTION 8. Human Resource Development. — It shall be created within the
Authority a Human Resource Development Committee to oversee the function of the
Authority for the human resource and manpower development of the construction
industry and specifically, shall

1, Draw up an overall construction human resource development plan, programs
and relevant strategies.

2. In coordination with TESDA, shall:

a. Develop training regulations, competency-based curriculum and
competency-based assessment materials;

b. Administer competency-based training;
c. Administer competency-based assessment;

d. Determine and recommend fees and upon approval by TESDA, impose
these on competency-based training and assessment; and

e. Maintain a registry of skilled workers trained, assessed, and certified.
3. In consultation with the private sector, shall

a. Formulate, adopt and set standards for site supervisors and

construction managers:

b. Accredit training providers for site supervisors and construction

managers;

c, Administer assessment and certification for site supervisors and
construction managers;


d. Determine and impose fees for training program, assessment, and
certification of site supervisors and construction managers; and

e. Maintain a registry of site supervisors and construction managers
trained, assessed, and certified

4, Recommend appropriate policies and measures to rationalize training and
export of developed human resource in the construction industry in coordination
with the Department of Labor and Employment (DOLE) and other pertinent
government agencies, and to maintain a registry of construction workers abroad

5. Develop, provide, and coordinate with private and public sectors, human
resource training programs for construction service providers and construction-
related entrepreneurs, construction site supervisors for domestic and foreign
deployment, standardization and improvement of construction techniques,
procedures and materials, quality assurance, and construction occupational
safety and health

6. Perform such other functions as may be assigned by the Authority

SECTION 9. Local Government Participation. — Cities and municipalities are
encouraged to create its own committee to oversee the development of programs for
skills upgrading of construction workers and the enhancement of technical capabilities
of all technical workers in the construction industry in their area. These local
government units are also encouraged to partner with workers organizations in their
areas in the delivery of skills training and upgrading services.

SECTION 10. Construction Industry Dispute Resolution. - The Construction
Industry Arbitration Commission, created by virtue of Executive Order No. 1008 or the
Construction Industry Arbitration Law, shall continue to exercise original and exclusive
jurisdiction over disputes arising from, or connected with, contracts entered into by
parties involved in construction in the Philippines, whether the dispute arises before or
after the completion of the contract, or after the abandonment or breach thereof. The
disputes cognizable by the CIAC may involve government or private contracts as
provided for under Republic Act No. 9184 or the Government Procurement Reform Act
and Republic Act No. 9285, also known as the "Alternative Dispute Resolution Act of
2004". The CIAC shall acquire jurisdiction upon the filing of a request for arbitration or
mediation by any or both of the contracting parties and shall be responsible for the
following, in addition to its powers and authority as specifically provided in this Act:

1. To formulate and adopt arbitration, mediation and other altemative dispute
resolution programs for the construction industry (hereinafter collectively called
as ADR programs);


2. To enunciate policies and prescribe rules and procedures for its ADR
programs;

3. To supervise its ADR programs and exercise such authority related thereto as
regards the training, accreditation, appointment, replacement or challenging of
arbitrators/ mediators/conciliators;

4. To have an official seal to authenticate its official documents;

5. To direct its officers and employees to perform such functions as may be
assigned to theme from time to time;

6. To submit its annual report to the Authority within three (3) months after the
end of the fiscal year; and

7. To perform such other functions as may be assigned by the Authority from
time to time.

SECTION 11. Constructor's Performance Evaluation System (CPES). - All
government construction projects regardless of funding source shall be subject to
CPES. For this purpose, no government project shall be acceptable by the concerned
agency unless it has undergone CPES evaluation. Failure of the responsible officer of a
particular project to implement CPES shall be deemed dereliction of duty and shall
make him or her liable for disciplinary action. In addition, he or she shall be jointly and
severally liable with the contractor for any damage or claim that may arise due fo his
failure to implement the CPES.

No contractor with a CPES final rating lower than satisfactory for a particular
project shall be eligible to bid for similar government construction projects in accordance
with the guidelines to be prescribed by the Authority

SECTION 12. Budget for PhilICIDA. - The national government shall continue to
allocate in its annual General Appropriations Act such amount that is presently allocated
for CIAP to the newly created PhilCIDA, which shall be used solely for its operational
expenses and capital outlay.

SECTION 13. Implementing Rules and Regulations. — The Authority shall, within
sixty days (60) from the effectively of this Act, issue such rules and regulations as may
be necessary for the implementation of the general provisions of this law, including the
authority to collect fees, impose levies and other charges to support its operations and
other lawful activities necessary in the execution of its functions and responsibilities.

SECTION 14. Transitory Provision. — Upon approval of this Act, the officers and
employees of the CIAP, PCAB, POCB, PDCB, CIAC, and the CMDF shall be
transferred to the Authority and shall continue to perform their respective functions,
duties and responsibilities and receive the corresponding salaries and benefits until a


new structure and plantilla shall have been submitted to and approved by the
Department of Budget and Management within thirty (30) days upon signing of this Bill

All permanent employees of the Construction Industry Authority of the Philippines
(CIAP), the Philippine Contractors Accreditation Board (PCAB), the Philippine Overseas
Construction Board (POCB), the Philippine Domestic Construction Board (PDCB),
Construction Industry Arbitration Commission (CIAC), and the Construction Manpower
Development Foundation (CMDF) who are not absorbed or transferred are hereby
declared qualified for early retirement and shall be entitled to separation pay equivalent
to three (3) months for every year of service, in addition to retirement and other benefits
allowed under existing laws. For this purpose, the revenues of CIAP, PCAB, POCB,
PDCB, CIAC, and CMDF are hereby appropriated and set aside for deposit in a
separate trust account for the payment of separation pay.

Upon effectivity of this Act, all revenues of CIAP, its implementing Boards, CIAC,
and CMDF shall be set aside and deposited in a separate trust account to cover the
payment of separation pay.

SECTION 15. Separability Clause. — The provisions of this Act are declared to be
separable and if any provision or the application thereof is held invalid or
unconstitutional, the validity of the other provisions shall not be affected.

SECTION 16. Repealing Clause. — All laws, rules and regulations and/or parts of
Republic Act 4566, Presidential Decrees 1167 & 1746 and Executive Order No. 1008
inconsistent with the provisions of this Act are hereby repealed accordingly.

SECTION 17. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least one (1) newspaper of general circulation

Approved,