FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
9 
S 
S. No. 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Civil Code, Article 1723, declares the liability for damages in any structure by 
reason o€ 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 not arise not only in case the structure should 
collapse, but also where the infrastructure undertaking should require major repair by reason of 
defective construction. 
Thirdly, this bill proposes to hold the contractors directly responsible for defective 
construction undertaken by sub-contractors. The sub-contractors shall merely assume subsidiary 
liability, This is to encourage contractors to be more cautious in their selection of sub- 
contractors. 
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.* 
* This bill was re-filed during the Thirteenth Congress, First Regular Session. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
7 
(*,!'3 2 1  
<;,I 
J !I 
First Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
AMENDING REPUBLIC ACT NO. 386, OTHERWISE KNOWN AS THE CIVIL CODE, 
ARTICLE 1723, ON THE LIABILITY OF ENGINEERS, ARCHITECTS OR 
SPECIFICATIONS OR THE USE OF MATERIALS OF INFERIOR QUALITY 
Be it enacted by the Senate and House ofRepvesentatives of the Philippines in Congress 
CONTRACTORS ARISING FROM WON-OBSERVANCE OF PLANS AND 
assembled: 
SECTION 1. Republic Act No. 386, otherwise known as the The Civil Code, Article 
1723, is hereby amended to read as follows: 
"Art. 1723. The engineer or architect who drew up the plans and 
specifications for ANY STRUCTURE 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 REPAIR 
by reason of a defect in those plans and specifications, or due to the defects in the 
ground. The contractor AND THE SUBCONTRACTOR DIRECTLY HIRED BY 
THE FORMER ARE [is] likewise responsible for damages if the STRUCTURE 
[edifice] falls OR REQUIRES MAJOR REPAIR, 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 ternis of the contract. If the engineer 
or architect supervises the construction, he shall be solidarily liable with the 
contractor and the SUB-CONTRACTOR, 
IN CASE THE CONSTRUCTION OF ANY INFRASTRUCTURE 
PROJECT OR ANY PART THEREOF IS UNDERTAKEN BY A SUB- 
CONTRACTOR HIRED BY THE CONTRACTOR, THE LATTER SHALL BE 
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DIRECTLY 
RESPONSIBLE 
AND 
THE 
FORMER 
SUBSIDIARILY 
RESPONSIBLE IF UPON COMPLETION THEREOF OR WHILE UNDER 
CONSTRUCTION, THE STRUCTURE FALLS OR REQUIRES MAJOR 
REPAIR WITHIN THE SAME PERIOD AND FOR THE SAME CAUSE 
ABOVESTATED. 
Acceptance of the building, after completion, does not imply waiver of 
any of the causes of action by reason of any defect mentioned in the preceding 
paragraph. 
The action must be brought within ten (10) years following the collapse of 
the building. 
SECTION 2. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provisions of this Act is hereby repealed, modified or amended accordingly. 
SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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