Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No, 8983

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

The significant contribution of the Construction in the economy is undeniable Likewise it has
significant potential in the country's growth This sector is the fastest growing industry in the last
six (6) years, having the second highest multiplier impact to the economy (next to
manufacturing), and being the top contributor to gross value added.

In 2018, real growth in construction reached 15.9% to become the only business sector with
double-digit real growth — the fourth time in the last seven (7) years. During this period of
sustained growth, the industry's growth fueled an additional 0.7% to GDP growth per year on
average — or 11% of all GDP growth for the period, next to manufacturing, domestic trade, and
business services, including real estate, and ahead of other services including tourism, finance,
transport, and communication.

More importantly, the industry has the second highest output multiplier of 2.2, which means that
a PHPI investment in construction, in return, will generate a total of PHP2.20 to the national
economy, inclusive of all direct and indirect effects. Finally, the industry remains the top
contributor to GDP with a 7.8% share which is higher than transport and communication, and
nearly equal to agriculture and forestry.

The significant contribution of the construction industry to total investments is evident in
consistently accounting for over half of total capital formation generated in the country since 2012
— which is equivalent to over 12% of GDP in the past six (6) years, and rising to 13.5% of GDP
in 2018.

The share of the industry in Gross Value Added to the national economy has consistently been
‘on the rise annually since 2005 when it stood at 4.7% of GDP to reach 7.8% of GDP in 2018.

In terms of employment, the construction industry currently provides direct employment to nearly
four (4) million workers, including roughly 84,000 workers employed in architectural and
engineering services. This translates to 9.6% of total employment and 9.1% of the country's total
labor force. Moreover, this industry is the fourth (4th) highest per unit investment generator of
direct and indirect employment, producing close to 4,000 jobs per PHP1B of investment in the
industry, higher than manufacturing, tourism, and transport-logistics. The sector is also venturing
into international markets generating foreign exchange earnings of about USD80 million on the


average per year and providing employment to 7,000 Filipino overseas workers. However with
the changing business environment our country’s present laws, powers governance, structure,
are no longer be attuned and appropriate to address the multiplicity of problems affecting the
growth and development of the Philippine construction industry and capability to fulfill its role in
nation-building. Therefore, this bill proposes the creation of Philippine Construction Industry
Development Board (PhilConDev) that will institutionalize public-private sector partnership in
accelerating the growth of the construction sector.

The proposed Philippine Construction Industry Development Board (PhilConDev) signals the
resurgence of a more effective governance that is future-proof and able to oversee the
development and regulation of the construction industry. It will level the playing field to allow
equal opportunities among qualified construction firms, professionals, and workers into providing
globally competitive construction services.

In order to further accelerate the growth and development of the Philippine Construction Industry,
this proposed measure aims to (1) Integrate the various implementing boards under the
Construction Industry Authority of the Philippines into one unified structure, to ensure
harmonization of policies more efficient utilization of resources to empower it to generate the
resources needed, utilize these resources effectively to regulate and develop the industry and
enhance its contributions to the economy without additional strain on the Government's limited
resources; (2) Convert the CIAP implementing boards into bureaus, (3) create a Construction
Enforcement Bureau to protect citizens against illegal construction practices and (4) strengthen
arbitration to ensure expeditious settlement of construction disputes among others It is the
author's view that these proposed changes in the governance structure of the construction
industry is necessary to enable the construction sector to transform itself into a modern efficient
forward looking and globally competitive industry that is integral in nation building—supporting
economic growth building better infrastructure for a safer community and stable future for the
Filipino Family.

On behalf of the people of Parafiaque City’s Second District, and for the common good of the
Filipino people, the approval of the said measure is earnestly sought.

REP. Abe om ia
ind- District, Parafiaque City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 8983

Introduced by HON. JOY MYRA S. TAMBUNTING

AN ACT
TO ACCELERATE THE GROWTH AND DEVELOPMENT OF THE PHILIPPINE
CONSTRUCTION INDUSTRY, CREATING FOR THIS PURPOSE THE PHILIPPINE
CONSTRUCTION INDUSTRY DEVELOPMENT BOARD, ABOLISHING THEREFORE THE
CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES (CIAP), AND
REPEALING REPUBLIC ACT NO. 4566, PRESIDENTIAL DECREE NO. 1746,
PRESIDENTIAL DECREE NO, 1167

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

Section 1. Title. — This Act shall be known as the "Construction Philippines Act of 2021."

Sec. 2, Declaration of Policy. — It is hereby declared the policy of the State to encourage,
promote, support, and enhance the orderly growth and development of the construction industry
in the Philippines, through the development and upgrading of the qualifications and
competitiveness of construction contractors, consultants, managers, and workers, as well as the
construction-related professionals, manpower, technological, and financial capabilities of the
industry in consonance with national interests and public safety.

Sec. 3. 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, micro and small contractors, designers,
consultants, material manufacturers, suppliers and dealers of construction materials, project
managers, supervisors, construction workers, construction project owners and construction
related professionals whether public or private, the Building Officials, and industry associations,
councils and organizations.

Sec. 4. Definition of Terms. — As used in this Act, the following terms are defined as follows:

(a) Board — Refers to the Philippine Construction Industry Development Board (PhilConDev)
as established under this Act.

(b) Construction Contractor — may be used interchangeably with the term “constructor” and
“builder”; refers to any person who undertakes or offers to undertake or purports to have


the capacity to undertake or submit a bid to, or does by himself or through others
construction works, such as but not limited to, construct, excavate, alter, repair, add to,
subtract from, improve, move, wreck or demolish any building, highway road, railroad, or
other structure, projects, development or improvement, or to do any part thereof,
including the erection of scaffolding or other structures or works in connection therewith,
‘As such, the term contractor includes subcontractor and specialty contractor.

(©) Construction Contracting — Refers to the act of providing all services for construction works
but not limited to rehabilitation works, improvement works, expansion works, and such
other related works and activities including the necessary supply of labor and services, as
well as the supply/fabrication with installation of materials, equipment and related items
which are integral parts of the works.

(d) Construction Industry ~ Refers to one of the major sectors of the economy which includes
all undertakings in the areas of project conceptualization and development; architectural
and engineering design; construction planning and management; construction contracting
and project execution; construction materials manufacture and supply; construction
equipment manufacture and supply; construction credit and finance; construction
insurance and suretyship; construction manpower supply; construction manpower training
and development; construction safety practitioners, providers and promoters; and all
other construction and related engineering services exports and supply areas.

(@) Construction Projects — Refer to the erection, improvement, development, rehabilitation,
demolition, repair, restoration or maintenance of buildings, roads and bridges, subways,
tunnels, cable car system, railways, airports, seaports, communication facilities, civil works
components of information technology projects, irrigation, flood control and drainage,
water supply, sanitation, sewerage and solid waste management systems, shore
protection, energy/power and electrification facilities, off-shore engineering works, and
other structures.

(F) Consultants in construction — Refers to persons (as defined in this Act) offering,
undertaking, rendering, engaging in, or purporting to have the capacity to undertake or
render professional, technical, financial, and other services for construction projects such
as, but not limited to, architecture and/or engineering design, planning, surveying,
supervision, and other construction-related management consultancy services and project
development.

(g) Domestic Construction — Refers to all types of construction projects undertaken in the
Philippines irrespective of the funding source.

(h) Filipino Construction Contractor — Refers to Filipino citizen, or partnership of Filipino
citizens, or corporation or other juridical person or entity, of which, in the case of a
corporation, at least sixty percent (60%) of its capital stock outstanding and entitled to
vote, is owned and held by Filipino citizens and at least sixty percent (60%) of the Board
of Directors thereof are Filipino citizens, and in the case of any other juridical person or
entity, at least sixty percent (60%) of its equity is owned and held by Filipino citizens. For
locally funded government construction projects, the term shall mean Filipino individuals


or corporations, partnerships or associations, of which seventy-five percent (75%) of the
capital stock outstanding and entitled to vote, is owned by Filipino citizens.
(i) Foreign-funded Projects — Refer to construction projects that are financed, wholly or in
part, by foreign financial institutions such as, but not limited to, the World Bank (WB), the
Asian Development Bank (ADB), the Islamic Development Bank (IDB) (A-Amanah Islamic
Bank), the Japan Bank for International Cooperation (JBIC), and other foreign official
development assistance.

General building contractor — Refers to person/s whose principal contracting business is
in connection with any structure built, being built, or to be built, for the support, shelter
and enclosure of persons, animal chattels or movable property of any kind, requiring in
its construction the use of more than two unrelated building trades or crafts or to do or
superintend the whole or any part thereof. Such structure includes sewers and sewerage
disposal plants and systems, parks, play-grounds and other recreational works, refineries,
chemical plants and similar industrial plants requiring engineering and architectural
knowledge and skill, powerhouses, power plants and other utility plants and installations,
mines and metallurgical plants, cement and concrete works in connection with the above-
mentioned fixed works.

Gg

(k) General engineering contractor- Refers to person/s whose principal contracting business
is in connection with fixed works requiring engineering knowledge and skill, including the
following divisions or subjects: irrigation, drainage, water power, water supply, flood
control, inland waterways, harbors, docks and wharves, shipyards and ports, dams, hydro-
electric projects, levees, river control and reclamation works, railroads, highways, streets
and roads, tunnels, airports and airways, waste reduction plants, bridges, overpasses,
underpasses and other similar works, pipelines and other system for the transmission of
petroleum and other liquid or gaseous substances, land leveling and earth moving
projects, excavating, grading, trenching, paving and surfacing work.

(1) Government Agencies - Refer to any department, bureau, office, commission, authority or
agency of the national government and local government units, including government-
owned or controlled corporations, authorized by law or their respective charters, to
contract for or undertake infrastructure or construction projects of any nature.

(m)Overseas Construction — Refers to all types of construction works, project management
or consulting services undertaken by a construction contractor or consultant in
construction outside the Philippines. This term includes overseas work which are in
support of and necessary to construction which may include cross border supply,
outsourced engineering or design services.

(n) Persons — Include an individual, firm, partnership, corporations, association or other
organization, or any combination thereof.

(0) Public Construction — Refers to all types of construction projects, such as but not limited
to infrastructure works for and on behalf of the national government or any of its
instrumentalities, local government units, including government-owned and/or controlled


corporations, whether these be executed by administration or by contract and irrespective
of funding source.

(p) Private Construction — Refers to all types of construction projects which do not fall under
the term "public construction", irrespective of owner's nationality.

(q) Specialty contractor — Refers to person/s whose operations pertain to the performance of
construction work requiring special skill and knowledge, and whose principal contracting
business involves the use of specialized building or construction trades or crafts.

Sec. 5. Philippine Construction Industry Development Board (Construction Board). —
There is hereby created a Philippine Construction Industry Development Board, hereinafter
referred to as the Board, under the Department of Trade and Industry (DTI) which shall serve as
the governing board and policy-making body for all construction industry-related matters.

The Construction Industry Authority of the Philippines (CIAP), Philippine Overseas Construction
Board (POCB), Philippine Contractors Accreditation Board (PCAB), 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 Board,

Sec. 6. Construction Board Members. — The Board shall be composed of thirteen (13)
Construction Board Members representing the public and private sectors with the Secretary of
Trade and Industry as Chair, Director General as Vice Chair, and the Secretaries of Public Works
and Highways (DPWH), Interior and Local Governments (DILG), Transportation (DOTR), Labor
and Employment (DOLE), the Chairman of the Professional Regulation Commission (PRC), and
six (6) representatives from the private sector.

The private sector Construction Board Members shall be shall be appointed by the President of
the Philippines for a term of two years, provided, that in the selection of the members of the
BOARD due consideration shall be given to such qualifications as would produce a multi-sectoral
combination of expertise in the various areas of construction, and whose names shall be
nominated by legitimate associations representing the various sectors in the construction
industry, such as but not limited to constructors, manufacturers, general consultants, equipment
service providers, and project developers, Provided further, that two (2) representatives shall be
from the dominant, national constructors association in the country.

Upon the expiration of the term, the Construction Board Members shall serve in a hold-over
capacity until the successors have been appointed and qualified. Provided further, that no vacancy
shall be filled except for the unexpired portion of any term, and that no one may be designated
to be a private sector Construction Board Member in an acting capacity but all appointments shall
be ad interim or permanent.

The private sector Construction Board Members are authorized to continue to engage in their
branches of the construction industry and the practice of their professions during their tenure and
immediately after resignation or separation from public office.


Sec. 7. Qualifications of the Construction Board Members. — The Construction Board
Members shall be citizens of the Philippines, at least 30 years old, of good moral character and
of recognized competence in the field of construction.

Sec. 8. Powers and Functions. — The Board shall be responsible for the acceleration of the
development and growth of the construction industry. It shall be vested with powers.and authority
over the construction industry, including construction contracting and related activities of
contractors, subcontractors, construction managers, consultants, construction-related
professionals and providers of construction manpower services in the Philippines and overseas.

Regular meetings of the Board shall be held once a month, but special meetings may be held as
often as may be deemed necessary; Provided that, in case of the absence or incapacity of the
department secretaries to attend any regular or special meeting of the Board, the next ranking
Undersecretary or Officer of the Association shall attend and be vested with the same power and
authority as a regular member.

‘At least eight (8) Construction Board Members shall constitute a quorum and a majority vote of
the members present shall be necessary for the adoption of any issuance, order, resolution,
decision or other act of the Board in the exercise of its functions,

For this purpose, the Board shall have the following powers and duties.

a

Formulate and implement policies, standards and best practices for the construction
industry and the efficient, safe, and effective delivery of public and private construction
projects including the formulation and enforcement of policies and guidelines for licensing,
registration, and/or accreditation of contractors, consultants, and other construction and
related engineering service suppliers;

b) Establish 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 the national
economy;

°)

Design and adopt strategies to accelerate the development of the construction industry,
including, but not limited to, measures for upgrading construction capabilities;

d) Develop a comprehensive construction skill upgrading program to improve the productivity
of construction professionals and skilled workers;

e

Monitor, research on, and study the construction industry in the Philippines and in other
countries to 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;

1) The Board shall be a member of all construction and other infrastructure-related bodies;

J) Make a periodic review of its organizational and operational capability, and effect a
restructuring, upgrading, or the creation of new plantilla positions and acquisition of
appropriate resources as may be deemed necessary. For this purpose, the Board may use
its income, subject to government auditing rules and regulations;

kK

Develop and maintain a construction industry information system including the
establishment of an updated database for construction workers and contractors that will
be accessibie to the public;

1) 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 Board's functions;

m) Assess, use, and collect fees and other assessments, 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;

n)

Approve the annual budget of the Board;

)

Adopt, alter, and use a corporate seal; enter into contracts, 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;

p) Submit an annual report of its activities to the Secretary of Trade and Industry;

q) Prescribe standards/criteria for the licensing, registration, and accreditation of the
construction industry in relation to manufacture, design, processes, construction
techniques, products and materials;

r) Work with concerned agencies both private and public to ensure the implementation of
integrated programs on developing local contractors’ capabilities, i.e. on modernization,
digitalization, and innovation.

Prescribe policies for accreditation of construction-related training institutions and/or
cettification of skilled construction workers and professionals;

s)

t

Register qualified contractors, provide better/more reliable licensing requirements;

u) Develop industry to enhance capability of constructors to compete globally;


v) Formulate training regulation for construction professionals and workers in the
construction related engineering courses;

w) Accredit construction industry related trainers, including training facilities;
x) Make doing business in the construction industry easy;

y) Develop and promote incentives to increase and promote the corporate exports of
construction and related engineering services in the construction industry;

2) Maintain an efficient knowledge management and information system;

aa) Foster inter-agency cooperation and implement a whole-of-government approach to
harmonize policies and resources in the public sector; and

bb) Exercise all the powers necessary or incidental to attain the purposes of this Act and its
implementing rules and regulations.

Sec. 9. Chief Executive Officer. — Policies and programs approved by the Board shall be carried
out by the Director-General, who shall act as the Chief Executive Officer. The Director General
shall be assisted by two (2) Deputy Directors General, one for operations, and one for
administration and legal.

Sec. 10. The Director General and Deputy Directors General.

10.1, The Director General. ~ The Director General shall be appointed by the President of the
Philippines, as recommended by the Secretary of Trade and Industry, such appointment shall be
coterminous withthe tenure of the President of the Philippines. The Director General shall enjoy
the benefits, privileges, and emoluments equivalent to the rank of an Undersecretary.

10,2, The Deputy Directors General. - The Deputy Directors General shall be appointed by
the President of the Philippines, as recommended by the Secretary of Trade and Industry,
preferably career service officers. The Deputy Directors General shall enjoy the benefits,
privileges, and emoluments equivalent to the rank of an Assistant Secretary.

10.3. General power and functions of the Director General. — He/she shall perform the
following functions:

a) Act as the Vice-Chairman of the Board and head of the Board’s technical secretariat;

b) Oversee the day-to-day operations of the Board;

©) Appoint the Board’s technical staff and other personnel subject to Civil Service rules and
regulations;

d) Preside over the meetings of the Board in the absence of the Chairman;

e) Recommend to the Board such policies and measures to effectively implement the Code;

f) Direct all other functions and activities of the Board, including the preparation of Agenda
for the meetings of the Board, promulgation of rules and regulations to implement its
objectives, policies, plans, programs and projects;


g) Spearhead the monitoring of all policies and programs of the Board, particularly by the
Bureaus, for the purpose of ensuring effectiveness and proper coordination; and
h) Perform other duties as may be assigned by the Chairman of the Board.

10.4, General power and functions of the Deputy Director General. — He/she shall
perform the following functions:

a) Assist the Director General in the implementation of the Act
b) Direct supervision over the personnel in his/her respective office; and
©) Perform other duties as may be assigned by the Board.

10.5. Qualifications. — The Director General and the Deputy Directors General must be natural
born citizens of the Philippines, at least thirty-five (35) years of age on the day of their
appointment, holders of a related college degree, and of proven competence, integrity, probity,
and independence. Provided, That the Director General and at least one (1) Deputy Director
General shall have at least ten (10) years of experience relevant to public policy, administration,
preferably in the construction industry.

10.6. Term of Office. - The Director General shall be co-terminus to the President and shall be
eligible for reappointment only once.

Sec 11. Bureaus and Offices. The Construction Board shall be composed of six (6) Bureaus, and
(4) Service Offices, to handle Administration, Finance, HR and Legal Affairs, each of which shall
be headed by a Director and assisted by an Assistant Director. The Bureaus are:

a) Construction Industry Regulation and Accreditation Bureau
b) Overseas Construction Industry Development Bureau

©) Domestic Construction Industry Development Bureau

4) Construction Industry Human Resource Development Bureau
) Construction Enforcement Bureau; and

) Construction Industry Arbitration Commission

The Director-General shall determine the organizational structure and staffing pattern of each of
the Bureaus and Service Offices, subject to the approval of the Secretary of Budget and
Management.

Sec. 12. Authority to Collect, Retain, and Use Fees. — The Board is empowered to determine
and collect fees, deposits, costs of arbitration, mediation or other ADR schemes, as well as
administrative and other charges as may be necessary in the performance of its functions and
responsibilities. For a more effective and expeditious implementation of this Act, the Director
General, with the approval of the Board, shall be authorized to retain, without need of a separate
approval from any government agency, and subject only to the existing accounting and auditing
rules and regulations, all the fees, fines, and other charges, collected by the Board under this Act
and the other laws that the Board will be mandated to administer, for use in the implementation
of programs, upgrading of its facilities, equipment outlay, human resource development, and the
acquisition of the appropriate office space, among others, to implement the provisions of this Act
and improve the delivery of its services to its stakeholders.


Sec. 13. Special Technical and Scientific Assistance. — The Director General is empowered
to obtain the assistance of technical, scientific, or other qualified officers and employees of other
departments, bureaus, offices, agencies and instrumentalities of the Government, including
corporations owned, controlled, or operated by the Government, when deemed necessary in the
consideration of any matter submitted to the Board relative to the enforcement of the provisions
of this Act.

Sec 14. Construction Industry Regulation and Accreditation Bureau. — The Philippine
Contractors Accreditation Board is now renamed as the Construction Industry Regulation and
Accreditation Bureau to be headed by a Director, with the following specific powers and functions:

a) Issue contractor's licenses, deny or recalll the grant thereof;

b) Determine and impose a schedule of fees for licensing as well as fees for services
incidental or related to licensing;

©) Suspend, cancel, or revoke licenses and/or impose penalties and fines in violation of
prohibited acts under this Act;

d) Accredit qualified Constructors Performance Evaluators for public and private construction

projects;

Accredit and/or certify skilled construction workers and construction site supervisors for

domestic and foreign deployment;

f) Accredit independent third-party certifying bodies for the implementation and
enforcement of various quality standards to be prescribed by the Board, including but nat
limited to, testing and training facilities;

9) Accredit engineering consultants;

h) Register construction equipment;

i) Adopt and enforce a code of ethics for contractors;

j) Conduct periodic review and evaluation of constructors performance ratings and adopt or
recommend appropriate measures to improve the quality and safety of construction;

k) Develop and prescribe standards for construction materials for implementation and
enforcement by the Bureau of Philippine Standards for Domestic Construction;

1) Subject to the approval of the Board, issue such rules and regulations as may be deemed
necessary to carry out its mandate;

m) Perform such other functions as may be assigned by the Director General and/or the
Board.

e)

Sec. 15. License as Prerequisite to Construction Contracts or Activity in the

hil ~ Save the exceptions provided for in this Chapter, all contractors must be licensed
by the Construction Industry Regulation and Accreditation Bureau (CIRAB) before they may be
allowed to apply for eligibility screening, to bid, or negotiate, and enter into any construction
contract, or undertake any construction activity for any construction project, public or private
whether in the Philippines or overseas.

Private project owners undertaking by themselves, sans the service of a contractor, the
construction of a project intended for sale, lease, commercial/industrial use, or any other income
generating purpose shall also secure a contractor's license before undertaking the same.

The project owner, whether government or private, shalll require the presentation of a contractor's
license before a contractor is prequalified or allowed to bid or negotiate for any construction
project.


Unless expressly provided otherwise, projects which are to be implemented under the provisions
of special laws as well as foreign-funded projects of the Philippine government covered by
bilateral agreements and to be awarded thru international bidding must also require a contractor’s
license before eligibility screening or its equivalent regardless of whether the bidder is a resident
of the Philippines or not.

Registration with the CIRAB as a government contractor shall also be required for all government
construction projects, regardless of funding source.

Sec. 16. Overseas Construction Industry Development Bureau. ~The Philippine Overseas
Construction Board is now renamed as the Overseas Construction Industry Development Bureau
to be headed by a Director, with the following specific powers and functions:

a) Develop and implement strategies to promote the Philippine construction industry in
overseas markets;

b) Advance Philippine interests in trade in construction and related engineering services for
better market access and favorable treatment of Philippine construction companies and
construction professionals and workers through active participation in bilateral, regional,
and multilateral trade negotiations;

©

Negotiate for better terms and conditions for market access of Filipino contractors and
raw materials in overseas construction markets;

d

Designate Special Construction Attachés and in coordination with other appropriate
government agencies, assign such attaches to countries where Filipino contractors and
consultants in construction are operating or may be likely to operate, and to undertake
the following functions:

1. Gather information needed to develop the Philippine overseas construction market;

2. Identify projects, opportunities, and countries where Philippine construction
companies may operate; and

3. Monitor the presence and the performance of Philippine construction companies
engaged in overseas projects to ensure the protection of both human resources and
the image of the Philippine construction industry in general; and to be able to provide
accurate trade statistics;

e

Identify opportunities, develop and implement overseas market promotion strategies for
registered contractors and consultants in construction;

f) Monitor the performance of registered Filipino construction contractors engaged in
overseas projects and take reasonable remedial measures to maintain the reliability of
Filipino services;

Subject to the approval of the Board, issue such rules and regulations as may be deemed
necessary to carry out the provisions of this; and

g.

h) Perform such other functions as may be assigned by the Director General and/or the

Board.


Sec. 17. Domestic Construction Industry Development Bureau. — The Philippine Domestic
Construction Board is now renamed as the Domestic Construction Industry Development Bureau
to be headed by a Director, with the following specific powers and functions:

a.

b,

Formulate and issue policies and guidelines for the efficient, safe and effective
‘of public and private construction projects in the country;

Develop and promote adherence to quality standards in construction design and
execution, including but not limited to, the implementation of the Constructors
Performance Evaluation System (CPES) program or its equivalent for public and private
construction projects in accordance with RA 9184, or the Philippine Government
Procurement Act.

Develop, promote, and prescribe the use of appropriate standard contract terms and
conditions for public and private construction;

. Prescribe appropriate export and import policies to ensure local supply sufficiency of

critical construction materials;

Develop programs and strategies for the use of local construction materials and for the

improvement of their quality, competitiveness and
Subject to the approval of the Board, issue such rules and regulations as may be deemed
necessary to carry out the provisions of this; and

|. Perform such other functions as may be assigned by the Director General and/or the

Board.

Sec. 18. Construction Industry Human Resource Development Bureau. — The
Construction Manpower Development Foundation is now renamed as the Construction Industry
Human Resource Development Bureau to be headed by a Director, with the following specific
powers and functions:

a

‘and implement standards for training and certification programs that are centered
to build appropriate capacities and competitiveness of our construction professionals and
skilled workers;

. Align HRD activities to international standards to promote professionalism,

‘competitiveness and global mobility of construction professionals and workers;
Coordinate with TESDA to equip our human resources, especially our workers, with the
necessary skills for employability;

|. Spearhead interagency commitment to ensure sufficient and steady stream of

construction manpower to meet market demand domestic and international;

. Design and recommend standardized compensation structures for construction activities

adapted to the country’s regions and with our ASEAN neighbors;
Establish a construction academy that will train construction professionals and workers
including the registration and orientation of foreign construction professionals and workers
on Philippine culture, laws and other requirements that will help foreign workers to adapt
to the local environment;

. Perform such other functions as may be assigned by the Director General and/or the

Board.

Sec. 19. Construction Enforcement Bureau (CEB). — There is hereby created a new bureau
to enforce the provisions of this Act. The CEB shall exercise concurrent enforcement authority
with agencies having jurisdiction under other laws. It shall: \


a. Investigate such violations under this Act and regulations issued in relation thereto as may
come to its knowledge;

b. Issue cease and desist orders to stop contractors including unlicensed contractors as well
as issue writs of execution to enforce its decisions and orders;

. Conduct inspections, by itself or in coordination with other competent agencies of the
government, at any time, with or without prior notice, of establishments or entities found
to be engaged in construction projects, without a valid contractors license; and employ
reasonable force in the event that the responsible person or persons of such establishment
or entity evades, obstructs, or refuses such inspection. For this purpose, the agents of the
PCEB shall be considered agents of persons in authority;

d. Act as complainant in the criminal prosecution of violators of this Act;

e. Hear and resolve administrative cases against violators of this Act and impose
administrative sanctions including, but not limited to, the imposition of fines and penalties;
For this purpose, the Board shall have the power to issue subpoena or subpoena duces
tecum to compel the attendance of witnesses and production of documents and other
effects;

f. Call upon faw enforcement agencies and the managing authorities for assistance in the
implementation and enforcement of its decisions, orders, rules and regulations;

g. Deputize provincial governors, city and municipal mayors, and representatives of the
national government agencies, organizations representing the construction industry to
help monitor compliance with and report to the CEB any violation of this Act.

h. Impersonate another licensed contractor;

Use of fake certificate or license;

26. Prohibited Acts. Under this Act, it shall be unlawful for any person to:

a) Undertake a construction project without a valid license; except for minor works or
construction by administration as may be determined by the Board;

b) Abandon without lawful and/or just excuse any construction project or operation engaged
in or undertaken by the licensee as a contractor

©)

Undertake a construction project without a contract;

d) Exercise willful material and substantial departure from or disregard of plans and/or
specifications in any material respect, and prejudicial to another without consent of the
owner of the person entitled to have the particular construction project or operation
completed in accordance with such plans and/or specifications, or their duly authorized
representatives;

@)

Misrepresent material and substantial fact by an applicant in obtaining a license, or
renewal or amendment of the same;

f) Submit falsified or fake documents or giving false evidence of any kind to support any
application for license or amendment thereto;


g) Undertake any construction activity during the period of suspension, except for projects
that are on-going at the time of the suspension for which an authority to continue the
same was issued with;

h) Undertake a construction project with an expired license;

Undertake a project outside its given classifications;

i) Any person or entity, and/or its proprietor or responsible officer registered with the
Committee who negotiates for or undertakes overseas projects and allied services, without
securing a license;

k) Impersonate another licensed contractor;

1) Use of fake certificate or license;

m) The participation by a contractor in the performance by any partnership, corporation, firm

or association of which he is a responsible managing partner, employee or officer, of any

act or omission constituting a cause for disciplinary action under this Act;

n)

Aiding or abetting an unlicensed person to evade the provisions of this Act, or knowingly
combining or conspiring with an unlicensed person, or allowing one’s license to be used
by an unlicensed person, or acting as agent, partner, associate, or otherwise of an
unlicensed person with the intent to evade the provisions of this Act;

©)

The doing of any willful or fraudulent act by the contractor, as a consequence of which
another is injured or damaged;

p) Any negligent act or omission by the contractor resulting in injury or damage to another;

Willful misrepresentation and/or use of spurious documents in the pursuit of his business
such as but not limited to: using a fake certificate or license, license lending or borrowing,
collusion and/or rigging in biddings;

q

ri

Violation of the provisions of this Act and the Rules and Regulations issued by the Board,
including the Code of Ethics for Contractors or any act, device, or scheme to circumvent
the provisions of this act, such as but not limited to the use of the license by a person
other than the licensee through a power of attorney or similar instrument; and

s) Commission of any act similar to the above, as may be determined by the Board.

Sec. 21. CEB Jurisdiction. - The CEB shall, upon its own motion, or upon the verified complaint
in writing of any person, or upon receipt of a written report from any government agency or
instrumentality, investigate the action of any contractor and may recommend to the CAB the
denial of a license to an applicant or suspend or revoke any license issued and/or impose fees or
fines if the license applicant or holder thereof has been found guilty of or has committed any acts
or omissions constituting causes for disciplinary action.

The CEB shall, upon its own motion, or upon the verified complaint in writing of any person, or
upon receipt of a written report from any government agency or instrumentality, investigate the


action of any person and may deny the grant of a registration or issuance of project authorization
to an applicant, or suspend or cancel any registration granted or authorization issued, and/or
impose fees or fines if the applicant or registrant has been found guilty by the Board of act or
omission constituting a cause for disciplinary action.

Sec, 22, Prescription. — All accusations or charges against contractors shall be filed within three
(3)years after the act or omission alleged as the ground therefore or after the discovery of
thealleged infraction,

Sec, 23. Penalties. — Commission of the Acts described under Section 20 hereof shall suffer the
following penalties, subject to the table of offenses to be determined by the Board:

a. One year suspension

b. Permanent revocation or non-renewal of license to operate

. Fines as percentage of total project cost or an amount not less than Fifty Thousand pesos
(Php.50,000.00) but not to exceed One Million pesos (Php.1,000,000.00)

d. Filing of administrative or court action under pertinent laws

Sec. 24. Construction Industry Arbitration Commission. - To carry out the policies set
forth under Executive Order 1008 s. of 1985, there is hereby created a Construction Industry
Arbitration Commission. The CIAC, shall continue to operate and shall be further strengthened to
encourage the early and expeditious settlement of disputes. The CIAC shall have original and
exclusive jurisdiction over disputes arising from, or connected with, contracts entered into by
parties involved in construction in the Philippines, whether the disputes arise before or after the
completion of the contract, or after the abandonment or breach thereof. These disputes may
involve government or private contracts.

For the CIAC to acquire jurisdiction, the parties to a dispute must be bound by an arbitration
agreement in their contract or subsequently agree to submit the same to voluntary arbitration in
cases arbitration agreement is not stipulated in their contract.

The jurisdiction of the CIAC may include but is not limited to violation of specifications for
materials and workmanship; violation of the terms of agreement; interpretation and/or application
of contractual provisions; amount of damages and penalties; commencement time and delays;
maintenance and defects; payment default of employer or contractor and changes in contract
cost.

Excluded from the coverage of this law are disputes arising from employer-employee relationships
which shall continue to be covered by the Labor Code of the Philippines.

“The CIAC shall be under the administrative supervision of the Board, and shall be assisted by the
Construction Industry Arbitration Bureau, to be headed by a Director, who shall be responsible
for receiving requests for arbitration and other pleadings; Notify the parties thereto; and, for
fixing and receiving filing fees, deposits, costs of arbitration, administrative charges, and fees. It
shall be the duty of the CIAB Director to notify the parties of the awards made by the arbitrators.
The CIAB, shall also assist the CIAC on the following:

a. Formulate and adopt an arbitration program for the construction industry;
b. Enunciate policies and prescribe rules and procedures for construction arbitration;


c. Supervise the arbitration program, and exercise such authority related thereto as regards
the appointment, replacement or challenging of arbitrators

Sec. 25. Implementing Rules and Regulations. — The Board shall, within sixty working days
(60) from the effectivity 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.

Sec 22. Appropriations. - The funds needed to carry out the provisions of this Act shall be
charged to the appropriations of the Construction Industry Authority of the Philippines (CIAP)
under the current General Appropriations Act and the fees, fines, royalties and other charges
collected by the CIAP for the calendar year.

‘After five (5) years from the coming into force of this Act, the Director General shall, subject to
the approval of the Secretary of Trade and Industry, determine if the fees and charges mentioned
in Section 12, hereof that the Office shall collect are sufficient to meet its budgetary requirements.
If so, it shall retain all the fees and charges it shall collect under the same conditions indicated in
said Section 12 but shall forthwith, cease to receive any funds from the annual budget of the
National Government; if not, such provisions shall continue to apply until such time when the
Director General, subject to the approval of the Secretary of Trade and Industry, certifies that
the above-stated fees and charges the Office shall collect are enough to fund its operations.

Sec. 23. Transitory Provisions. — Upon approval of this Act, the officers and employees of the
abolished CIAP shall be transferred to PhilConDev 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 after the signing of this Act.

Sec. 24, Repealing Clause. — Provisions of the Republic Act No. 4566, Presidential Decree No.
1746, Presidential Decree No. 1167 and all laws, rules, and regulations, presidential decrees,
letters of instruction, and other presidential issuances which are incompatible or inconsistent with
the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 25. Separability Clause. — If any provision or part of this Act is declared invalid or
unconstitutional, such declaration shall not affect the validity of the remaining provisions of this
Act.

Sec, 26. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation. It shall also be published
online, through the Official Gazette Online (www.officialgazette.gov.ph), and through the website
of the Department of Trade and Industry (www.dti.gov.ph).

Approved,