" 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 1717 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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SEP 18 P4:06 
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 arise not only in case the structure should collapse, 
but also where the infrastructure undertaking should require major repairs by reason of defective 
construction. 
Thirdly, this bill proposes to hold the contractors directly responsible for defective 
construction undeliaken by sub-contractors. The sub-contractors shall merely assume subsidiary 
liability. This is to encourage contractors to by more cautious in their selection of subcontractors .. 
This bill is a product of the public hearings conducted by the Committee on 
Constitutional Amendments, Revision of Codes and Laws during the Tenth Congress. 
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t#" MIRIAM DEF~~SOR sifYlfrf'v 
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[ 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 1717 
Introduced by Senator Miriam Defensor Santiago 
S!?nntr 
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'13 
SEP 18 P 4 :06 
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AN ACT AMENDING REPUBLIC ACT NO. 386, 
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OTHERWISE KNOWN AS THE "CIVIL CODE OF THE PHILIPPINES," ARTICLE 1723, 
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ON THE LIABILITY OF ENGINEERS, ARCHITECTS OR CONTRACTORS ARISING 
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FROM NON-OBSERVANCE OF PLANS AND SPECIFICATIONS OR 
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THE USE OF MATERIALS OF INFERIOR QUALITY 
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Be it enacted b)l the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Republic Act No. 386, otherwise known as the "Civil Code of the 
Philippines," Article 1723, is hereby amended to read as follows: 
"Art. 1723. The engineer or architect who drew up the plans and 
specifications for ANY INFRASTRUCTURE 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 REP AIRS by reason of a defect in those plans and 
specifications, or due to the defects in the ground. The contractor AND THE 
SUBCONTRACTOR HIRED BY THE FORMER ARE [is] likewise 
responsible for damages if the STRUCTURE [edifice] falls OR REQUIRES 
MAJOR REP AIRS, 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 
SUBCONTRACTOR. 
IN CASE THE CONSTRUCTION OF ANY INFRASTRUCTURE 
PROJECT OR ANY PART THEREOF IS UNDERTAKEN BY A 
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SUBCONTRACTOR HIRED BY THE CONTRACTOR, THE LATTER 
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SHALL 
BE 
DIRECTLY 
RESPONSIBLE 
AND 
THE 
FORMER 
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SUBSIDIARIL Y RESPONSIBLE IF UPON COMPLETION THEREOF OR 
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WHILE UNDER CONSTRUCTION, THE STRUCTURE FALLS OR 
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REQUIRES MAJOR REPAIR WITHIN THE SAME PERIOD AND FOR 
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THE SAME CAUSE ABOVESTATED. 
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Acceptance of the building, after completion, does not imply waiver of 
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any of the causes of action by reason of any defect mentioned in the preceding 
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paragraph. 
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The action must be brought within ten (10) years following the collapse of 
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the building." 
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SECTION 2. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
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with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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