Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

- 1473
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 2008 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 modern 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 eams 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 (PhiICIDA); 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.

CW.

DIOSDADO Al AL ARROYO = GLOR| RT ERO OYO
Second District, Camarines Sur Se€ond District, Pampanga

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

Howae'dinna: 2479

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 2010."

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;

c. 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 (PCI), 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

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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 pian 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 alternative
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 PhilCIDA. — 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 shalll take effect fifteen (15) days after
its publication in the Official Gazette or in at least one (1) newspaper of general
circulation.

Approved,