FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
8 JUN -4 P I  4 7  
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to strengthen and modernize the construction industry by creating 
the Philippine Construction Industry Development Authority or PhilCIDA. 
The construction industry is one of the vital and promising sectors of'the 
economy. In 2005, it accounted for 43.0 percent of the country's Gross Fixed Capital 
Formation and 4.2 percent of the Gross Domestic Product. It also generated 1.7 million 
jobs or 5.3% of the country's total in the same year. It provides the basic physical, 
industrial, commercial and social infrastructure facilities necessary for the growth and 
sustained development of the different sectors of the economy such as housing, 
manufacturing, commerce, transport, agriculture, services and various other industries. 
Without a modern and efficient construction industry, the provision and maintenance 
of vital infrastructure facilities would be impaired and would seriously erode the 
nation's ability to improve the Filipino's living conditions. 
The potentials of the industry to generate export receipts and create overseas jobs 
for Filipino workers are also huge and well known. Filipino engineering and 
construction firms have been successful in penetrating the Middle East market since the 
1970s. The sector earns 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 can be 
enhanced several times. 
Despite its potentials, the industry has not sustained its growth parallel with the 
growth of the population and the nation's expanding requirements and has been 
outpaced by several countries in Southeast Asia which have continuously upgraded 
their industry capacities and the skills of their construction workers and engineers. The 
country's construction industry can catch up with the guiding help of the government 
and the leadership of an agency able to strategize how to position the industry under 
regional and global integration. 
The existing Construction Industry of the Philippines (CIAP), given its limited 
functions, personnel and resources, is unable to address the multiplicity of problems 
and emerging challenges affecting the growth and development of the Philippine 
construction industry. Further, the country is unable to produce enough construction 
engineers, designers and skilled workers, a great number of whom are being poached 
by foreign construction companies. Another problem of the industry is the insufficiently 
addressed need to upgrade the skills of a large number of community-based 
construction workers and provide them adequate protection. 


This bill, therefore, seeks to address the foregoing multi-faceted problems and 
challenges facing the construction industry. The salient features of which are as follows: 
(a) promotion of the upgrading, modernization and competitiveness of the 
construction industry through the creation of the Philippine Construction 
Industry Development Authority (PhilCIDA); and 
(b) advancement of an integrated human resources development for the 
industry, covering the skills, health and safety and protections concerns of the 
construction workers in the formal and informal sectors. 
This proposed measure envisions to promote the competitiveness of the industry 
by raising the standards of construction work, enhancing the skills of the workers 
through training, promoting occupational safety and health standards at the workplace 
and fostering greater public-private partnership in construction industry development. 
In view of the foregoing, the passage of this bill is earnestly sought. 
Senator 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
8 JUN -4 
P I  :47 
First Regular Session 
. 
*- 
S E N A T E  
S.B.  NO.=?^ 
Introduced by Senator Loren Legarda 
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." 
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; 
1 


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 (PCCI), 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 
2 


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 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 
constructions 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 plan 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 
3 


f. 
g. 
h. 
i. 
1. 
k. 
1. 
policies, legislation and other measures for the optimum development of the 
construction industry; 
Prescribe and issue policies, rules and regulations, circulars and guidelines 
pertinent to its powers and functions; 
Develop programs and strategies for the optimum use of local construction 
materials and for the improvement of their quality, competitiveness and 
efficiency; 
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; 
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; 
Develop and maintain a construction industry information system that is 
efficient and accessible to the public; 
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 
4 


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-born 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: 
5 


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 


6. Perform such other functions as may be assigned by the Authority. 
SECTION 9. Local Government Participation - The cities and municipalities are 
encouraged to create its own committee to oversee the development of programs for 
skills upgrading of the construction workers and the enhancement of technical 
capabilities of all the 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 


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 to 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. 
8 


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 provision 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 shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least one (1) newspaper of general circulation. 
Approved, 
9