Republic of the Philippines
HOUSE OF REPRESENTATIVES  
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
  HOUSE BILL NO.   
  INTRODUCED BY REPRESENTATIVE ROMEO S. MOMO, SR. 
EXPLANATORY NOTE 
The construction industry has been growing at an average rate of ten percent (10%) in the last five years - 
the fastest among all sectors. It has been the biggest direct job contributor in the last ten years, employing 
more than four million workers in 2019. The entire construction sector is estimated to be around twelve percent 
(12%) of the total economy. In the midst of a pandemic that has shaken the global economy, many countries 
including the Philippines are relying on the construction industry to buoy their economic recovery. 
However, it is likewise in the context of this economic slowdown that efforts emerged to open up the 
Philippine construction industry to foreign players. Such a move would allow foreign contractors, often 
multinational companies or entities heavily financed by their home country, to compete freely with our local 
contractors, 97% of whom are micro, small, and medium enterprise (MSME) contractors. While 
liberalization ideally seeks to nurture competition and generate growth, the unregulated entry of foreign 
players at this time may actually box out local contractors from the market while yielding minimum benefit 
to the country and the ordinary Filipino. 
Instead of thrusting local and foreign players into a free-for-all competition, this bill seeks to strengthen 
the safeguards for domestic MSMEs so that they may realistically operate alongside foreign entrants. It 
likewise seeks to put Filipinos first by ensuring that with the entry of foreign contractors, Filipino industry, 
labor and materials are given preference, instead of allowing foreign workers and suppliers to earn the lion's 
share of local projects. Further, this measure seeks to maximize the potential benefit of opening the market 
to foreign players by aiming to create and capture opportunities for meaningful technology transfer and 
capacity building of our local contractors. 
It is in this light that approval of this bill is earnestly sought. 
 
ROMEO S. MOMO, SR. 
Representative 
1st District of Surigao del Sur 
July 31, 2025
2:00 pm
2799


Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL No. 2799
INTRODUCED BY REPRESENTATIVE ROMEO S. MOMO, SR. 
AN ACT  
FURTHER AMENDING REPUBLIC ACT NO. 4566 ALSO KNOWN AS 'THE 
CONTRACTORS' LICENSING LAW 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
SEC. 1. A new Section 17 of Republic Act No. 4566 is hereby inserted to read as follows: 
"Section 17. Who may practice construction contracting. -  Only persons, regardless 
of nationality or citizenship, properly licensed and registered with the Philippine 
Contractors Accreditation Board (the "Board") with conformity of the Construction 
Industry Authority of the Philippines (the "Authority") may practice construction 
contracting in the Philippines." 
SEC. 2. A new Section i8 of Republic Act No. 4566 is hereby inserted to read as follows: 
"Section 18. Protection of Filipino industry. - In the issuance of licenses to foreign 
contractors, the Board shall promulgate rules and regulations to ensure that foreign 
contractors shall give priority to Filipino labor and materials in the undertaking of its 
projects." 
SEC. 3. A new Section 19 of Republic Act No. 4566 is hereby inserted to read as follows: 
"Sec. 19. Technology and knowledge transfer. - The Board shall promulgate rules and 
regulations to ensure that licensed foreign contractors engage in appropriate 
technology and knowledge transfer and capacity building." 


SEC. 4. A new Section 20 of Republic Act No. 4566 is hereby inserted to read as follows: 
"Sec. 20. Protection of domestic contractors. - The Board shall promulgate rules and regulations, 
or recommend to Congress the enactment of a law as the case may be, to ensure that the 
privileges available to foreign contractors, insofar as they are applicable, are made 
available to domestic contractors, and the warranties required for domestic contractors are, 
insofar as they are applicable, are similarly required for foreign contractors." 
SEC. 5. A new Section 24 of Republic Act No. 4566 is hereby inserted to read as follows: 
"Section 24. License types. - License means the authority granted by the Philippine 
Contractors Accreditation Board (the "Board") with conformity of the Construction Industry 
Authority of the Philippines (the "Authority") for a person to engage in construction 
contracting in the Philippines. There shall be two types of licenses designated as regular and 
special licenses: 
a) Regular license is issued to a domestic construction firm which shall authorize the 
licensee to engage in construction contracting within the field and scope of his license 
classification(s) for as long as the License validity is maintained through annual renewal, 
unless renewal is denied or the License is suspended, cancelled or revoked for cause. 
Regular license shall be reserved for and issued only to constructor-firms of Filipino 
sole proprietorship, or partnership/corporation with at least sixty percent (60%) Filipino 
equity, except when otherwise allowed by the implementing rules. 
b) Special license is issued to a joint venture, consortium, foreign constructor, or 
project owner which shall authorize the licensee to engage only in the construction of a 
single specific undertaking/project. In case the licensee is a foreign firm, the license 
authorization shall be further subject to condition(s) as may have been imposed by the proper 
Philippine government authority in the grant of the privilege for him to so engage in 
construction contracting in the Philippines. Annual renewal shall be required for as long 
as the undertaking/project is in progress, but shall be restricted to only as many times as 
necessary for completion of the same. 
The following may qualify for a Special License: 
1) A joint venture, consortium or any such similar association organized for a single 
specific undertaking/project; 
2) A foreign firm legally allowed by the proper Philippine government authority or agency 
to undertake construction activities in the Philippines; 
3) A project owner undertaking by himself, sans the service of a constructor, the 
construction of a project intended for sale, lease, commercial/industrial use or any other 
income generating purpose." 


4) A foreign firm bringing in a new technology that is new or inexistent or of 
inadequate supply in the country. 
SEC. 6. A new Section 26 of Republic Act No. 4566 is hereby inserted to read as follows: 
"Sec. 26. Restriction in government contracts. 
- Government contracts shall not be 
awarded to foreign contractors unless the Board has duly certified that no other local 
contractor can undertake the specific project applied for: Provided, that foreign 
contractors shall be allowed to undertake foreign-financed projects, Build-
Operate-Transfer (BOT) contracts, and Public-Private Partnership (PPP) 
programs." 
SEC. 7. The succeeding sections of Republic Act No. 4566 are hereby renumbered 
accordingly. 
SEC. 8. Implementing Rules and Regulations. The Philippine Contractors Accreditation Board, in 
coordination with the Construction Industry Authority of the Philippines, and in consultation with 
other stakeholders shall issue the implementing rules and regulations within thirty (30) days from 
the effectivity of this Act. 
SEC. 9. Separability Clause. If, for any reason, any part or provision of this Act is declared invalid 
such declaration shall not affect other provisions of this Act. 
SEC. l0. Repealing Clause. Any law, presidential decree or issuance, executive order, 
administrative order, rule or regulation contrary to, or inconsistent with the provisions of this Act 
is hereby repealed, modified or amended accordingly. 
SEC. 11. Effectivity. This Act shall take effect fifteen (15) days after its publication in the Official 
Gazette or in a newspaper of general circulation. 
 
 
 
Approved.