Quezon City

EIGHTEENTH CONGRESS

Second Regular Session

HOUSE BILL No._7816

Introduced by REPRESENTATIVE JOEL MAYO Z. ALMARIO

EXPLANATORY NOTE

Itis the declared policy of the state to develop a self-reliant and independent
national economy effectively controlled by Filipinos and it also recognizes the
indispensable role of the private sector, encourages private enterprise, and provides
incentives to needed investments,

The Build-Build-Build Program of the National Government will not only
improve the current state of infrastructure in the Philippines, but will also generate
income to our jocal construction stakeholders.

Under the current Contractors’ License Law, foreign contractors can apply for
regular contractor license thereby effectively putting them on equal footing with their
local contractor counterparts. This imminent imbalance of capital and trade will
result in an unjust treatment with our local contractors and will inevitably result in
the transfer of wealth to a foreign entity.

‘The local contractor stakeholders shall be given the priority in construction
activities in the Philippines. Therefore, in order to fully protect the interests of the
Philippines in relation to construction, safeguards have to be put in the current
Contractors’ License Law to restrict foreigners from regularly undertaking
construction activities in the Philippines.

This measure seeks to put qualifications on foreign participation in the
construction activities in the Philippines. This measure will also give incentive to our
local construction stakeholders through prioritization,

Hence, the approval of this bill is earnestly sought.

ALMARIO

2m! District, Davao Oriental


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. ED

Introduced by REPRESENTATIVE JOEL MAYO Z. ALMARIO

AN ACT
AMENDING SECTIONS 19 AND 20 OF REPUBLIC ACT NO. 4566 ENTITLED
“AN ACT CREATING THE PHILIPPINE LICENSING BOARD FOR
CONTRACTORS, PRESCRIBING ITS POWERS, DUTIES AND FUNCTIONS,
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES.

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

SECTION 1. Section 19 of the of Republic Act No. 4566 is hereby amended to read
as follows:

“Section 19. Examinations required. In accordance with the rules and
regulations promulgated by it, the Board may investigate, classify, and
qualify applicants for contractors’ licenses by written or oral
examination, or both.

Upon due examination, the Board shall certify that no other local
contractor can undertake a certain project before a foreign entity be
granted a contractor license to operate in the Philippines.”

Sec. 2. Section 20 of the of Republic Act No. 4566 is hereby amended to read as
follows:

“Section 20-a. Qualifications of Filipino applicants for contractors’
licenses. The Board shall require an applicant to show at least two
years of experience in the construction industry, and knowledge of
the building, safety, health and lien laws of the Republic of the
Philippines and the rudimentary administrative principles of the
contracting business as the Board deems necessary for the safety of
the contracting business of the pubic. For the purpose of this section,
a partnership, corporation, or any other organization may qualify
through its responsible managing officer appearing personally
before the Board who shall prove that he is a bona fide responsible

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officer of such firm and that he exercises or is in a position to
exercise authority over the contracting business of his principal or
‘employer in the following manner: (1) to make technical and
administrative decisions; and, (2) to hire, superintend, promote,
transfer, lay off, discipline or discharge employees.

Section 20-b. Qualifications of foreign applicants for contractors’
licenses. No foreign entities shall be given license to operate in the
Philippines unless otherwise certified by the Board that no other
local contractors are capable of undertaking certain project applied
for. The foreign applicant shall have all the necessary qualifications
in the preceding Section and none of the disqualifications as found in
this Act”

Sec. 3. Repeating Clause - All laws, presidential decrees, executive orders, and
rules and regulations, or parts thercof, which are inconsistent with the provisions
ofthis Act are hereby repealed or modified accordingly.

Sec. 4, Effectivity Clause - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved.