Ra 4566

Rules and Regulations
Governing Licensing and Accreditation of Constructors in the Philippines

As Revised
Courtesy of PCA Metropolitan Chapter 2

Rules & Regulations promulgated under RA 4566
RULES AND REGULATIONS

GOVERNING
LICENSING AND ACCREDITATION
OF
CONSTRUCTORS IN THE PHILIPPINES
Published by:
PHILIPPINE CONTRACTORS ACCREDITATION BOARD
Construction Industry Authority of the Philippines
5/F, Finman Centre, Tordesillas St.
Salcedo Village, City of Makati
Philippines 1270

FOREWORD
The Handbook on Rules and Regulations Governing Licensing and Accreditation

of Constructors in the Philippines was prepared to provide construction contractors, project
owners and other parties concerned the latest information on the said subject.
This publication contain the revised rules and regulations of Republic Act, 4566,
otherwise known as the Contractors License Law, and pertinent laws governing the
licensing and accreditation of constructors.
This is a project of the Philippine Domestic Construction Board (PDCB) in

collaboration
with
the
Philippine
Contractors
Accreditation
Board
(PCAB),
implementing boards of the Construction Industry Authority of the Philippines (CIAP).
both

TABLE OF CONTENTS
RULE
RULE
RULE
DEFINITION OF TERMS
Sec. 1. 1
Definition of Terms
Sec. 2. 1
Powers and Duties of the Board
2
3
3.1
3.2
3.3
3.4
License Types
License Validity
Terms and Conditions of a Constructor's License
The License and License Certificate
9
10
10
11
REQUIREMENTS FOR LICENSING
4.1
4.2
4.3
4.4
4.5
4.6
4.7
Qualifications for Licensing

Sustaining Technical Employee
Authorized Managing Officer
License Application Filing
Regular License Application Documents
Special License Application Documents
License Application Processing
12
12
13
14
14
15
17
LICENSE CLASSIFICATION AND CATEGORIZATION
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
RULE
CONSTRUCTOR'S LICENSE
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
RULE
POWERS AND DUTIES OF THE BOARD
Sec.
Sec.
Sec.
Sec.
RULE
Page No
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
Contracting Classification
Classification Processing
Multiple Classification
Operation by Classification
Updating of Classification Requirements
Constructor Categories
Categorization Criteria
Category Identification
Categorization of Special License Constructors
Updating of Categorization Requirements
18
18
19
19
19
19
19
20
20
21
LICENSE RENEWAL AND RE-EVALUATION
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
6.1
6.2
6.3
6.4
6.5
6.6
Annual License Renewal

License Renewal Application Filing
License Renewal Application Documents
Classification Review
Category Review
License Renewal Applicants Failing Classification Review and/or
21
21
22
23
24
26
Category Review
Sec. 6.7
Sec. 6.8
Sec. 6.9
RULE
Sec. 7.4
8
28
29
29
LICENSE AMENDMENTS
Sec. 7.1
Sec. 7.2
Sec. 7.3
RULE
Provisional License Renewal

License Renewal Certificate
Late License Renewal and License Lapsing
Category Upgrading
Classification Revision
Application for Classification Revision and Category Upgrading
Jointly with License Renewal
Other License Amendments
ACCREDITATION OF CONSTRUCTORS
30
30
30
30

RULE
RULE
RULE
RULE
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
8.10
8.11
8.12
8.13
8.14
8.15
8.16
Accreditation
Quality of Overall Performance
Index Rating
Performance Factors in Index Rating
Eligibility for Accreditation
Application for Accreditation
Recognized Rating Entities
Accreditation Application Processing
Accreditation Approval
Accreditation Certification
Accreditation Validity
Re-Accreditation
Index Rating Review
Index Rating Upgrading
Accreditation or Re-Accreditation Denial
Accreditation Revocation
Sec.
Sec.
Sec.
Sec.
9.1
9.2
9.3
9.4
Licensing Fees
Accreditation Fees
Amount of Fees
Payment of Fees
31
31
31
32
33
33
34
34
35
35
35
35
36
36
36
37
LICENSING AND ACCREDITATION FEES
10
37
38
39
39
RIGHTS AND DUTIES OF LICENSED CONSTRUCTORS
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
10.1
10.2
10.3
10.4
10.5
10.6
Regular License Authorization

Special License Authorization
Joint Operation Licensing
Renewal of License
Disassociation of a Sustaining Technical Employee
Change of an Authorized Managing Officer
10.7
Change in an Accreditation Performance Factor
10.8
10.9
10.10
10.11
Change of Address
Change of Name
Change in Business Organization Style
Introduction of Foreign Equity
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
11.1
11.2
11.3
11.4
11.5
11.6
11.7
11.8
11.9
11.10
11.11
11
39
40
40
40
40
40
41
41
41
41
DISCIPLINARY ACTION, PROCESSING AND DECISION
12
Disciplinary Action
Cause for Disciplinary Action
Jurisdiction
Prescription
Complaint
Complaint Withdrawal
Service and Answer
Evidence
Memorandum
Decision
Petition for Reconsideration
42
42
43
44
44
44
44
44
44
45
45
LICENSE DENIAL AND CANCELLATION
Sec. 12.1
Sec. 12.2
License Denial
License Renewal Denial
45
46

Sec.
Sec.
Sec.
Sec.
Sec.
RULE
12.3
12.4
12.5
12.6
12.7
13
RULE
APPENDIX
APPENDIX
APPENDIX
APPENDIX
APPENDIX
APPENDIX
47
47
47
47
48
LICENSE SUSPENSION LIFTING AND RESTORATION
Sec. 13.1
Sec. 13.2
Sec. 13.3
RULE
Permissible Operation after License Non-Renewal

Retirement from Construction Contracting
Death or Disassociation of a Partnership Partner
Death of a Sole Proprietor
Introduction of Foreign Equity
14
License Suspension Lifting

License Restoration
License Non-Restoration
48
48
49
CODE OF ETHICS
Sec. 14.1
Code of Ethics
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
15.1
15.2
15.3
15.4
15.5
15.6
Application of the Law and Exemptions therefrom

Enforcement by the Board
Enforcement by Officers of the Law
Enforcement in Construction Biddings
Penalties
Effectivity
I
II
III
IV
V
CATEGORY EVALUATION
ACCREDITATION INDEX RATING
FEES
FINES
REPUBLIC ACT NO. 4566
An Act Creating the Philippine Licensing Board for Contractors,
prescribing its Powers. Duties and Functions, providing Funds
therefore, and for other Purposes
PRESIDENTIAL DECREE NO. 1746
Creating the Construction Industry Authority of the Philippines
15
49
ENFORCEMENT OF THE LAW
VI
50
51
51
51
52
52
53
55
58
61
62
68

RULE 1
DEFINITION OF TERMS
Sec. 1.1 Definition of Terms

Unless otherwise specified, the following terms, as used therein, shall mean as defined:
a) "Law" means Republic Act No. 4566, as amended by Letter of Instruction No.993 and by
Presidential Decree No.1746;
b) "Authority" means the Construction Industry Authority of the Philippines;
c) "Board" means the Philippine Contractors Accreditation Board;
d) "Secretariat" means the secretariat of the Board;
e) Person" means an individual, or any juridical entity such as a partnership, a joint venture,
a consortium, an association or organization, or any combination thereof;
f)
"Constructor" shall have the same meaning as "contractor" as used in Section 9(b) of the
Republic Act No. 4566;
g) "Joint Venture" means a cooperative arrangement of licensed constructors to jointly

perform a single specific undertaking/project with each of the partners contributing to the
performance;
h) Consortium" means a cooperative arrangement between licensed constructor(s) and
non-constructor(s) to jointly perform a single specific undertaking/project with the licensed
constructor(s) as managing and operating partner(s) and the others as financier(s) or any
such other construction supportive role;
i)
"License" means the authority granted by the Board with conformity of the Authority, for a
person to engage in construction contracting in the Philippines and, refers to a Regular
License, a Special License or both, as discussed in Sec. 3.1 herein;
j)
"Category" indicates the graded level of aggregate capability of a constructor based on

pre-determined criteria which include financial capacity, equipment capacity, experience
of firm, and experience of technical employees;
k) Classification" means the area of operation wherein a constructor can engage in based
on the technical experience of his sustaining technical employee;
l)
"Principal Classification" is the main contracting classification of a multi-classification

constructor with respect to which his category was evaluated;
m) "General Engineering" refers to the contracting classification that a licensed "General

Engineering contractor", as used in Section 9 of the Republic Act No. 4566, is
authorized to engage in as further explained in Sec. 5.1 herein;
n) "General Building" refers to the contracting classification that a licensed "General Building
contractor", as used in Sec. 9(d) of the Republic Act No. 4566, is authorized to engage in
as further explained in Sec. 5.1 herein;

o) "Specialty" refers to the contracting classification that a licensed "Specialty" contractor, as

used in Sec. 9(e) of the Republic Act No. 4566 is authorized to engage in as further
explained in Sec. 5.1 herein;
p) "Sustaining Technical Employee" means a constructor's nominee from among his
technical personnel, who is approved as such by the board and whose training and
experience are to sustain the constructor's classification eligibility and/or to accrue to the
constructor's credit rating in categorization;
q) "Authorized Managing officer, duly appointed by the constructor and authorized by the
Board to act for and in behalf of the constructor, in all matters concerning requirements of
the Board and implementation of R.A. 4566 and P.D.1746;
r)
"Credit Point" refers to the equivalent weight of importance given to each of the
qualification criterion for the purpose of categorizing constructors;
s) "Accreditation" means the status conferred on a licensed constructor by the Authority,

upon the recommendation of the Board, indicating the performance and experience of the
constructor as being in accord with standards set by the Board;
RULE 2
POWERS AND DUTIES OF THE BOARD
Sec. 2.1 Powers and Duties of the Board

The Board is vested by provisions of R.A. 4566 and P.D.1746 with the following powers and
duties:
a) To perform and implement the policies of the Authority;
b) To issue, suspend and revoke Licenses of constructors;
c) To issue rules and regulations, subject to confirmation of the Authority for implementation
of R.A 4566 as amended by P.D.1746.
d) To adopt rules and regulations to effect the classification, categorization and accreditation
of constructor;
e) To limit the operations of constructors to within the bounds of their respective
classifications and/or any restriction as may be imposed by the Board on their respective
Licenses;
f)
To investigate any violation of the Law and the provisions hereof and, for this purpose,
may issue subpoena and subpoena duces tecum to secure appearance of witness in
connection with any charge presented to the Board; or to cause the investigation of the
violation by the Ministry of Trade and Industry under Executive Order No. 913.
g) To institute action in court and secure a writ of injunction without bond to restrain any
unlicensed constructor from engaging or attempting to engage in construction contracting;
h) To impose fine on any such above said violation;
i)
To enter any premises where construction work is being carried out to inspect the
construction and, where necessary, to enforce the Law and the provisions hereof or to
prevent contravention thereof; such entry may be by any Board Member or any member
of the Secretariat duly authorized by the Board;

j)
To collect fees and undertake income generating activities whenever necessary, to

sustain the Board's performance of its functions and discharge of its responsibilities;
k) To gather and collate information on constructors relevant to implementation of R.A.

4566, P.D.1746 and the provisions hereof;
l)
To publish in a newspaper of general circulation, at least once a year, particulars of

licenses issued, renewed, suspended and revoked and such other information relevant to
the Law and its administration and deemed proper by the Board;
m) To keep a permanent record of constructors ever licensed by the Board, including therein
the name, address, License number, classifications(s), category, License status whether
renewed, suspended cancelled, revoked or denied renewal, accreditation details, if
applicable, and such other information of interest to the construction industry and general
public; and
n) To submit an annual report of the activities and proceedings of the Board to the President
of the Philippines thru the Authority.
RULE 3 CONTRACTOR'S LICENSE

Sec. 3.1 License Types
Two types of Licenses are hereby instituted and designated as follows:
a) The Regular License
"Regular License" means a License of the type 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(s).
The Regular License shall be reserved for and issued only to constructor-firms of Filipino
1
sole proprietorship, or partnership/corporation with at least seventy percent (70%)
Filipino equity participation and duly organized and existing under and by virtue of the
laws of the Philippines.
b) The Special License
"Special License" means a License of the type issued to a joint venture, a consortium, a
foreign constructor or a 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 can qualify only for the Special License:
Adjusted to 60% under Art.48 of Chapter III, Book II of the Omnibus Investment Code of 1987

ba) A joint venture, consortium or any such similar association organized for a single
specific undertaking/project;
bb)
A foreign firm legally allowed by the proper Philippine government authority to

undertake construction activities in the Philippines.
bc) 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.
Sec. 3.2 License Validity
a) Regular License
st
th
A Regular License shall be valid for one fiscal year, from the 1 of July to the 30 of June
of the ensuing year, unless suspended, invalidated, cancelled or revoked earlier by the
st
Board, and shall be renewed annually. A license issued after the 1 of July shall be valid
for the remaining part of the fiscal year.
b) Special License
A Special License, shall be cancelled by the Board upon completion of the single specific
undertaking/project authorized by the license and to which it is, therefore, restricted, even
though before expiry of the fiscal year.
Sec. 3.3 Terms and Conditions of a Contractor's License.
a) The License is non-transferable.
b) The License is valid during the contracting fiscal year (July 1 to June 30) for which it was
issued provided it has not been suspended, cancelled or revoked by the Board.
b) The License is to be renewed annually on or before the expiration of its validity.
d) The Licensee must not submit any bid, or enter into any construction contract after the
License has expired and before the same is renewed otherwise the constructor shall be
deemed to be operating without a contractor's License and shall be liable to appropriate
disciplinary action and payment of additional License fee.
e) The Licensee must not undertake/implement any construction project which is not within
the scope of his License classification otherwise he shall be liable to appropriate
disciplinary action and payment of additional licensing fee.
f)
The Licensee's qualification is subject to review at any time to ascertain the constructor's
eligibility to the present classification and category of his License.
g) License category may be upgraded and other classification(s) may be added to the
license upon formal application by the Licensee together with all the necessary
supporting documents.
h) The Licensee must notify the Board in writing of resignation or disassociation of any of its
Sustaining Technical Employee and must replace the said employee within a period of
ninety days from the date of resignation or disassociation.
i)
The Licensee must submit to the Board monitoring reports that may be required from time
to time.

j)
The Licensee must observe and abide by the provisions of Republic Act No. 4566, as
amended by Presidential Decree NO. 1746, its implementing Rules and Regulations, and
other orders or instructions which the Board may issue from time to time pursuant to its
power and authority under the Law.
k) The Licensee must at all times observe and adhere to the letters and spirit of the code of
ethics for constructors.
l)
Any misrepresentation or false information submitted to the Board shall subject the
Licensee to Administrative disciplinary action without prejudice to the imposition of penal
sanctions provided by law.
m) A Licensee who is retiring from the construction business must advise the Board in writing
and must immediately surrender the license to the Board for cancellation.
Sec. 3.4 The License and Licensee Certificate
The License shall authorize the Licensee to engage in construction contracting in the
Philippines, subject to License type and classification restrictions as stipulated in Sec. 3.1
and 5.4 hereof. The License shall be in the name of the successful License applicant, whether
a sole proprietorship, partnership, corporation, joint venture, consortium or any other
association. Each Licensee, even one of multiple classifications, shall be issued only one
License.
The License certificate shall bear, among others, the following information:
a) Name of Licensee with name of the Authorized Managing Officer or proprietor, if a sole
proprietorship, appended thereto;
b) License number;
c) Date of issue and date of expiry;
d) Contracting classification(s) with, if a multi-classification constructor, the Principal
classification identified as such;
e) Constructor category;
f)
If a Special License, identification of the single specific undertaking/project thereby

authorized and other condition(s) as may have been imposed; and
g) Signatures of the Chairman and members of the Board and the Chairman of the
Authority.
The Special License certificate shall be of a title indicative of its type and numbered in a
series separate from that of the Regular License. The Board, at its own discretion, may adopt
a different medium of certification for the Special License.
In any revision of a constructor's License which necessitates a change in any of the
information on the License certificate, the certificate previously issued him shall be submitted
to the Board for annotation thereon.

RULE 4 REQUIREMENTS FOR LICENSING

Sec. 4.1 Qualifications for Licensing
To be eligible as a candidate for licensing, an applicant shall have the following minimum
qualifications deemed by the Board to be necessary for the safety of the public and the
interest of both the public and the construction industry;
a) He must, by virtue of his Sustaining Technical Employee or by himself, if sole-proprietor2
applicant, have at least two (2) years of construction implementation experience, and
knowledge of Philippine construction-building codes and ordinances, labor safety codes
and other laws applicable to construction operation, subject to the nomination
requirement as provided for under Section 4.2 hereof.
b) He must, by virtue of his Authorized Managing Officer or by himself, if a sole-proprietorapplicant, have at least two (2) years of experience in construction contracting, business
management and contract administration, and knowledge of Philippine laws on contracts,
liens, taxation, labor and other construction business matters, subject to the nomination
requirement as provided for under 4.3 hereof.
c)
He must have a stockholders'/owner's equity or networth of at least the amount required

to qualify for the lowest constructor category; and
d) If a partnership or corporation, the applicant firm shall have, in its Articles of

Partnership/Incorporation, construction as a primary purpose, or as a division or
department separate and distinguishable from the overall organization of the firm.
The foregoing notwithstanding, the eligibility of an applicant shall be further contingent
upon his non-possession of any of the disqualifications for or impediments to licensing as
stipulated in Sec.11.1 hereof.
Sec. 4.2 Sustaining Technical Employee
A Sustaining Technical Employee shall be nominated by the constructor from among his
technical personnel and whose training and experience shall be considered by the Board in
determining the appropriate contracting classification(s) and/or category of the constructor as
may be sustained by such qualifications. To fully qualify for the said nomination, the
Sustaining Technical Employee, in addition to the requirement stated in Section 4.1(a) hereof,
must:
a) Be a technology professional licensed by the Professional Regulation Commission and of
academic discipline relevant to the classification of his intended assignment; provided
that, in lieu thereof:
aa) A licensed technology professional of any other academic discipline but who has
been employed, in a managerial/supervisory capacity, by a constructor in
construction of a classification for at least four(4) years immediately prior to his
nomination, may be deemed eligible by the Board for nomination to the classification
by the constructor; and
ab) For trade category with Specialty Classification, an individual with two years
construction implementation experience in the specialty classification to which he is
being nominated shall suffice.
2
increased to three (3) years on 23 August 1988 Board Meeting

b) Be a full-time employee of the nominating constructor, not associated professionally or

employment-wise with any other party, particularly one engaged in construction or
construction-related activities; except a party affiliated with the nominating constructor or
with whom such association is deemed by the Board to be not undesirable nor
incompatible with his role as a Sustaining Technical Employee; and
c) Have none of the following disqualifications:
ca) Involvement in any construction malperformance of grave consequence, in any
capacity and deemed by the Board to be suggestive of his negligence,
incompetence and/or malpractice;
cb) Involvement in any act or omission liable for disciplinary action as stipulated in Sec.
11.2 hereof, by himself or in collaboration with any other person or firm and of which
he or the other person or firm was found guilty by the Board;
cc) Conviction by a court of competent jurisdiction of any offense involving moral
turpitude; and
cd) If a former Sustaining Technical Employee or Authorized Managing Officer
disassociated with his constructor-employer, failure to notify the Board of the
disassociation in accordance with the provisions of Sec.10.5 and Sec.10.6 hereof.
The Board, however, shall be empowered to moderate or otherwise modify the
application of any of the foregoing disqualifications, if justifiable by evidence of
mitigating circumstance and of any loss or injury resulted therefrom having been
amply and properly restituted, and if there is a reasonable indication of a deterrent
against repetition or recurrence of the same.
A constructor may have more than one Sustaining Technical Employee to qualify for licensing
in more than one classification. He may also have more than one Sustaining Technical
Employee in any classification in which he is licensed. Only one Sustaining Technical
Employee is necessary to sustain a constructor's eligibility for a classification. A technology
professional of academic multi-discipline may even be approved by the Board to sustain a
constructor's eligibility for more than one classification. In categorization, however, every
addition of a Sustaining Technical Employee of the required experience in a classification
accrues to the improvement of a constructor's credit rating in that classification in the
categorization criterion of Experience of Technical Personnel
A Sustaining Technical Employee who meets the qualifications stipulated in Sec. 4.3 hereof,
may be appointed by a constructor and approved by the Board to hold a position of
Authorized Managing Officer concurrently. A sole proprietor, himself, or any officer of a
partnership/corporation may be a Sustaining Technical Employee.
Sec. 4.3 Authorized Managing Officer
An Authorized Managing Officer shall be nominated by the constructor to be its authorized
sole management representative to act on all matters concerning the requirements of the
Board and implementation of R.A. 4566 and P.D. 1746. To qualify for the said nomination,
the Authorized managing Officer nominee, in addition to the requirement stated in sec. 4.1 (b)
hereof, must:
a) Be a senior executive of the nominating constructor firm, empowered to render general
management and administrative decisions;

b) Have none of the disqualifications applicable to a Sustaining Technical Employee and

stipulated in Sec. 4.2 hereof.
A constructor shall have only one Authorized Managing Officer whose appointment shall be
evidenced by a joint resolution of all the partners, if a partnership, joint venture or consortium,
and by a resolution of the firm's board of directors, if a corporation, a sole-proprietor
constructor, however, must, himself, be the Authorized managing Officer of the firm.
An Authorized Managing Officer who meets the qualifications stipulated in Sec. 4.2 hereof,
may be nominated by a constructor and be approved by the Board to hold the position of a
Sustaining Technical Employee concurrently.
Sec. 4.4 License Application Filing
License application shall be filed with the Secretariat. The required application documents
shall be as prescribed in Sec. 4.5 and Sec. 4.6 hereof.
An application which is complete with respect to prescribed documentary requirements, shall
be received by the Secretariat and considered filed as of the date of such receipt.
Sec. 4.5 Regular License Application Documents
An application for a Regular License shall comprise of the following:
a)
Duly accomplished application form as prescribed by the Board;
b)
ORGANIZATION
ba) List of corporate directors and officers/partners (for Corporation/Partnership only);
bb) List of stockholders/partners and their respective equity holdings in the applicant firm
(for Corporation/Partnership only);
bc) Certificate of Registration with the Bureau of Domestic Trade (for sole proprietorship
only);
bd) Certificate of Registration with the Securities and Exchange Commission and Articles
of Incorporation and By-Laws (for corporation/partnership only);
be) SSS Certificate of Membership of the Company;
bf) Nomination of Authorize Managing Officer;
bg) Curriculum Vitae of Authorized Managing Officer/Proprietor;
c)
FINANCIAL
ca)
Latest audited financial statements signed on each and every page by a Certified
Public Accountant and properly stamped-received by the Bureau of Internal
Revenue;
cb)
Supplementary schedules of the latest audited financial statements of the applicant

for the immediately preceding taxable year, except incase of newly formed
corporation or partnership;

d)
cc)
Income Tax Return of the applicant for the immediately preceding taxable year
properly stamped-received by BIR and the official receipt covering income tax paid,
except in case of a newly formed Corporation/Partnership;
cd)
Authorization to depository bank to release information to PCAB;
ce)
Bank Statement of Account for the last month of the immediately preceding taxable
year certified by the Bank Manager;
cf)
Transfer Certificate of Title, tax declaration, latest official receipt covering payment
of realty tax of land and other real properties owned by the firm;
EQUIPMENT CAPACITY
da) List of equipment currently owned;
db) Deed of Sale or Invoice with complete address of vendor or official receipt issued by
the vendor covering the equipment currently owned;
dc) Certificate of registration with current official receipt of BLT registration fees paid
covering transportation and delivery equipment owned by the firm;
e)
EXPERIENCE OF SUSTAINING TECHNICAL EMPLOYEES

ea) List of technical personnel employed by the company;
eb) Affidavit of Sustaining Technical Employee(s);
ec) Curriculum vitae of Sustaining Technical Employee(s); and
ed) SSS Form R-1 to include the name of the Nominated Technical Employee(s).
The Board may require the submission of pertinent documents/information other than the
above in order to fully determine the qualifications of an applicant.
Sec. 4.6 Special License Application Documents
An application for a Special License shall comprise, on a case to case basis, of the following:
a) A Joint Venture of all Filipino Partners
aa)
Application properly accomplished on form as prescribed by the Board;
ab) Joint venture Agreement;

ac) Joint resolution of all partners authorizing one among them to act in their behalf;
ad) Identification of the project by title, owner and location; and
ae) "Invitation to Bidders", "Instruction to Bidders", or "Notice to Bidders" published in
newspapers or disseminated by the tendering agency showing the deadline for Prequalification and the date of bidding.
b) A Joint Venture of Filipino and Foreign Partners
ba) All documents required for Case (a); and

bb) Special License of each foreign partner, applicable to the joint venture.
c) A Consortium of All Filipino Partners
ca) Application properly accomplished on forms as prescribed by the Board;
cb) Consortium agreement;
cc) Joint resolution of all partners authorizing a constructor among them to act in their
behalf;
cd)
Of each non-constructor partner,

i.
Bureau of Domestic Trade or Securities and Exchange Commission

Registration Certificate, whichever is applicable;
ii.
Articles of Partnership/Incorporation;
iii.
List of officers and directors and their respective equity in the firm;
iv.
List of stockholders who each holds twenty percent (20%) or more equity in
the firm;
v.
Certification by the firm's secretary of Filipino equity percentage in the firm;

and
vi.
Latest audited financial statements and Income Tax Return submitted to the
Bureau Of Internal Revenue;
ce)
Identification of the project by title, owner and location; and
cf)
"Invitation to Bidders", "Instruction to Bidders", or "Notice to Bidders" published in

newspapers or disseminated by the tendering agency showing the deadline for
Pre-qualification and the date of bidding.
d) A Consortium of Filipino and Foreign Partners

da)
db)
All documents required for Case (c), except:

i.
That the constructor referred to in Item (cc) shall be a Filipino, and
ii.
That Item (cd) shall not apply to foreign non-constructor partner(s);
Special License of each foreign constructor partner, applicable to the consortium;

and
i.
Authorization by the proper Philippine government authority to participate in

the consortium, and
ii.
Company brochure and latest audited financial statements duly authenticated

by the embassy of the partners country.
e) A foreign Constructor
ea)
Application properly accomplished on form as prescribed by the Board;

eb)
General Information Sheet;
ec)
Board Resolution authorizing its Resident Alien Representative in the Philippines

to act for and in behalf of the company. The Board Resolution must define the
scope and/or limitations of the powers of the Resident Alien Representative:
ed)
Board Resolution appointing and authorizing the Filipino Resident Agent to

accept summons and other legal process in behalf of the applicant;
ee)
Copy of Contractors License/Permit/Authority issued by the appropriate

government agency in the home country of the applicant foreign contractor, if
required by the home government;
ef)
Certification from the appropriate Tendering Agency (Ministry, Bureau, Office)

that the project is foreign financed/ internationally-funded and that international
bidding is allowed under the Bilateral Agreement entered into by and between the
Philippine Government and the foreign/International Financing Institution;
eg)
Certificate issued by the Board of Investments allowing the foreign contractor to

undertake construction project in the Philippines;
eh)
Copy of "Invitation to Bid" or "Instruction to Bidders" or "Notice to Bidders"

showing the date of bidding;
ei)
List of completed construction project(s) in the Philippines undertaken by the

company during the last three (3) years showing the following: Title of Projects,
Location, Tendering Agency (DPWH, MWSS, NIA, etc.) Lending Institution
(IBRD, ADB, OECF), Date contract was signed, Date of completion, Loan
Agreement No.;
ej) List on-going construction project(s) in the Philippines being undertaken by the
company showing the following: Title of Project, Location, tendering Agency,
Lending Institution, Date Contract was signed, scheduled date of completion.
Loan Agreement No.;
f)
ek)
Audited Financial Statements during the preceding year; and
el)
Philippine Income Tax Return during the preceding year, if applicable.
A Project Owner
fa)
All documents required in Sec. 4.5 hereof;
fb)
Identification of the project by title owned and location.
Sec. 4.7 License Application processing

The processing of License applications shall be made on a monthly batch basis. The Board
shall either approve or disapprove each application subject to subsequent approval of the
Authority. The Board's decision shall be communicated in writing to each applicant within ten
(10) days from the date of such decision and, accordingly, the license certificate shall be
prepared for and issued to those whose applications were duly approved.
Any applicant who was not satisfied with the Board's decision on its application may file a
written request for reconsideration and to present appropriate documents to the Board in
support of such request within thirty (30) days from receipt of notice thereof. Failure to do so

shall be a ground for the Board not to entertain such request if file beyond the prescribed
thirty (30) day period.
RULE 5 LICENSE CLASSIFICATION AND CATEGORIZATION

Sec. 5.1 Contracting Classification
In pursuance of the provisions of Sec.17 of R.A. 4566 and Sec. 2(d) of P.D. 1746 and for the
purpose of a more accurate evaluation of a constructor's capability, the three main contracting
classifications of General Engineering, General Building and Specialty, as provided in Sec. 9 of
R.A. 4566 are hereby sub-classified, by areas of specialization, as follows:
a) General Engineering Construction:
aa)
ab)
ac)
ad)
Road, highway, pavement and bridge

Irrigation and flood control
Dam, reservoir and tunneling
Port, harbor and offshore engineering
b) General Building Construction:

ba) Building and industrial plant
bb) Sewerage and sewage treatment/disposal plant and system
bc) Water treatment plant and system
bd) Park, playground and recreational work
c) Specialty Construction:
ca)
cb)
cc)
cd)
ce)
cf)
cg)
ch)
ci)
cj)
ck)
Foundation Work
Structural Steel Work
Concrete pre-casting and pre-stressing
Plumbing and sanitary work
Electrical work
Mechanical work
Mechanical work(Ventilation-refrigeration)
Mechanical work (Elevator-conveyor)
Fire protection work
Waterproofing work
Painting work
The Board shall be empowered to add, delete, modify and/or alter the foregoing subclassifications, whenever deemed necessary by the Board to render them more relevant and
responsive to prevailing conditions.
Wherever the term "classification" is used herein, it shall mean to refer to classification or subclassification or both.
Sec. 5.2 Classification Processing
The classification of a constructor shall be determined by the training and experience of the
constructor or of his Sustaining Technical Employee. To qualify for a classification, said
training and experience shall be of the nature and level required for the classification, same
as required for eligibility of a Sustaining Technical Employee and stipulated in Sec. 4.1 and
4.2 hereof. The Board however, may prescribe any additional requirement whenever deemed
necessary.

Sec. 5.3 Multiple Classification

A License applicant or a licensed constructor may apply for and be issued more than one
classification; provided that one of which shall be designated by the applicant as his Principal
classification. The rest shall be considered as other classification(s).
The category of a multi-classification and shall be evaluated with respect to his Principal
classification and shall be recognized as such.
Sec. 5.4 Operation by Classification
A licensed constructor shall operate within the classification(s) that he is authorized, by his
License, to engage in. A Regular License constructor shall, however, be allowed to
undertake an extra classification work, if it is incidental and/or supplementary to a project
under his contract and to be undertaken in conjunction with his implementation of said project.
Sec. 5.5 Updating of Classification Requirements
The Board shall be empowered to add to, amend or otherwise modify the classification
eligibility requirements as stipulated in Sec. 5.2 hereof, whenever deemed necessary by the
Board to render such requirements compatible with the intent of classification.
Sec. 5.6 Constructor Categories
Every constructor shall be graded and assigned a category as an adjunct to his licensing.
General Engineering and General Building constructors shall be categorized in a scale of six,
namely: AAA, AA, A, B, C, and D. Specialty constructors shall be categorized in a scale of
seven, namely: AAA, AA, A, B, C, D and Trade.
Sec. 5.7 Categorization Criteria
Evaluation of category shall be based on the following criteria quantified by equivalent credit
points in scales as determined by the Board:
a) Financial Capacity
Financial capacity shall be in term of Networth based on the latest audited financial
statements submitted to the Bureau of Internal Revenue, or paid-up capital based on the
latest audited financial statements submitted to the Securities and Exchange
Commission, if a newly-organized /partnership or corporation.
b) Equipment Capacity
Equipment capacity shall be in term of book value as reflected in the constructor's latest
audited financial statement submitted to the Bureau of Internal revenue or to the
Securities and Exchange Commission, whichever is applicable, of equipment owned
which are in operational condition and applicable to construction of the classification in
which the constructor is to be categorized. Said owned equipment shall include units
under installment payment and/or under lease purchase.
c) Experience of Firm
Experience of firm shall be in terms of:
ca) Aggregate number of years in which the constructor firm, under the same business
identity, has been actively engaged in construction contracting and operation; and

cb) Average annual value of work completed by the firm during the past three (3) years,
or if a constructor's License is less than three (3) years, since being licensed, based
on audited financial statements submitted to the Bureau of Internal Revenue.
d) Experience of Technical Personnel
Experience of technical personnel shall be the sum total of individual experience of each of
the Sustaining Technical Employee nominated to the classification in which the constructor
is to be categorized. Said individual experience of a Sustaining Technical Employee shall
be as defined and qualified below:
da) The experience shall be in term of aggregate number of years in which the
Sustaining Technical Employee, in his present employment as well as previous, has
been involved in construction of the classification in which the constructor is to be
categorized.
db) It shall include only the years in which he was performing in managerial/supervisory
capacity bearing on construction operation and/or contract implementation.
3
dc) It shall be subject to a creditable ceiling of twenty (20) years , over which no
excess shall be recognized, and to a creditable floor set by the Board for each
constructor category.
The Board shall be empowered to add to, amend or otherwise modify the foregoing
criteria whenever deemed necessary by the Board.
Sec. 5.8 Category Identification

Evaluation of a constructor's category shall consist of rating his various qualifications by credit
points. The constructor's category shall be the one sustainable by each of the following three
(3) category determinants:
a) Minimum credit points in the criterion of Financial Capacity.
b) Minimum credit points in the criterion of Experience of Technical Personnel.
c) Aggregate credit points in all criteria as provided for under Sec. 5.7 hereof.
The credit point scale of each category determinant mentioned above is shown in
APPENDIX I.
Constructors aspiring for a particular category must satisfy all the minimum credit points
required under the three category determinants mentioned above which correspond to
the desired category. Otherwise, the constructor shall be considered for the any lower
category as could be fully sustained by his present qualifications. Each constructor shall
be given only one category. A multi-classification constructor shall be given the category
corresponding to his Principal Classification.
Sec. 5.9 Categorization of Special License Constructors
Special License Constructors shall be allowed modified supplications of the provisions of Sec.
5.7 hereof, on a case to case basis, as follows:
increased to thirty (30) years per Board Resolution No.125, Series of 1994

a) A Joint Venture or Consortium

A joint venture or consortium shall be assigned the category of the Filipino constructorpartner with the biggest equity share therein or, in case of absence of equity
predominance, whose representative holds the highest executive position thereof;
provided that, if applied for by the joint venture or consortium, the Board shall evaluate
the category corresponding to the combined capabilities and resources of the partners
which are to be summarized in joint statements by the partners under oath, and audited
and/or authenticated as the Board may require.
b) A Foreign Constructor
A foreign constructor may be categorized in accordance with the provisions of Sec. 5.7
and 5.8 hereof, based on its qualifications as could be established from the license
application documents stipulated in Sec. 4.6.e hereof.
c) A Project Owner
Experience of firm, as a criterion, shall be made up of aggregate cost and construction
time of past project(s) which a project owner may have undertaken without the service of
a constructor.
The Board, at its own discretion, any prescribe separate procedures and requirements for
categorization of Special License constructors, in consideration of their peculiarities and
possible time constraints in the processing of their applications.
Sec. 5.10 Updating of Categorization Requirements
The Board shall be empowered to add to, delete from, amend, revise or otherwise update the
requirements and procedures for categorization, as provided herein, whenever deemed
necessary by the Board to render categorization relevant and responsive to actual prevailing
conditions.
RULE 6 LICENSE RENEWAL AND PRE-EVALUATION

Sec. 6.1 Annual License Renewal
A licensed constructor, unless he is retiring from construction contracting, shall renew his
License annually to maintain the continued validity of his License. Renewal shall be applied
th
for on or before the expiry of his current License, which is the 30 of June of every year.
Notwithstanding said deadline, the Board shall be empowered, in the interest of efficiency in
renewal application processing, to organize constructors into separate groupings, to assign
an earlier renewal deadline for each grouping, and to require adherence thereto by licensed
constructors.
A Special License shall be allowed only as many times of annual renewal as necessary for
completing the single specific undertaking/project for which the license was issued. The
Board, at its own discretion, may prescribe separate requirements and procedures for
renewal of Special Licenses.
Sec. 6.2 License Renewal Application Filing
License renewal applications shall be filed with the Secretariat. An application complete with
the required documents as prescribed in Sec. 6.3 hereof, and accompanied by payment for

applicable fees, shall be received by the Secretariat and considered filed as of the date of
such receipt. A License renewal applicant shall be allowed to rectify any error and/or to make
up for any deficiency in his application, as may be discovered by the Secretariat subsequent
to its filing. However, in case of an error or a deficiency which is clearly indicative of the
applicants gross disregard of the intent of the requirements prescribed in Sec. 6.3 hereof, the
Board may nullify the filing of the application and serve a written notice to that effect on the
applicant, within ten (10) days after discovery of such error or deficiency.
Sec. 6.3 License Renewal Application Documents
An annual License renewal application shall comprise of the following:
ORGANIZATION
a) General Information Sheet on form as prescribed by the Board.
FINANCIAL CAPACITY
b) Income Tax Return for the preceding taxable year duly stamped-received by the BIR,
official receipt of income tax paid, audited financial statement for the preceding taxable
year, inclusive of balance sheet, and profit and loss statement duly stamped-received by
the BIR; and a statement of changes in financial position on form as prescribed by the
Board;
c) List of Fixed Assets acquired during the immediately preceding year excluding
construction equipment, corresponding copy of Deed of Sale and/or official receipt
issued by the vendor; and, if applicable, Transfer Certificate of Title, Tax Declaration and
Realty Tax Payment Receipt of newly acquired real properties;
EQUIPTMENT
d) List of construction/delivery and transportation equipment/machineries/plants owned by
the company on form prescribed by the Board, copy of BLT registration of each
equipment for the current year, if applicable, and copy of Deed of Sale and/or official
receipt issued by the vendor for any newly acquired equipment;
EXPERIENCE OF FIRM
e) Statement of Annual Value of Work Accomplished during the immediately preceding year
on form prescribed by the Board;
EXPERIENCE OF TECHNICAL EMPLOYEES
f)
Roster of Technical Employees; Curriculum Vitae and Affidavit of Undertaking of each

newly nominated Sustaining Technical Employee on form as prescribed by the Board;
and
g) Copy of pertinent page of SSS Form R-3, submitted to SSS during the first quarter
preceding the filing of this application, which contains the name(s) of all nominated
Sustaining Technical Employees.
The Board may further require the submission of documents other than the above in order to
fully ascertain the capability of the constructor.

Sec. 6.4 Classification Review

Classification review is a re-examination of a constructor's classification eligibility and shall
required in connection with the processing of a constructor's annual License renewal
application and whenever as warranted by disassociation of a Sustaining Technical
Employee, by employment termination, death or any other cause, in a classification with only
one such employee. Review shall be based on classification criteria as stipulated in Sec. 5.2
hereof, and shall proceed, varying with the circumstance of each case, as follows:
a) In case of a Sustaining Technical Employee disassociation reported to the Board and
constructor allowed a period of ninety (90) days to nominate a replacement, as provided
in Sec. 10.5 (a) hereof, the constructor's classification eligibility shall be reexamined upon
such nomination or, in the absence thereof, at the replacement period expiry.
aa) Where a nominee is found qualified, the constructor shall be allowed to retain the
classification
ab) Where no nominee has been found qualified or where there has been no nominee as
of replacement period expiry, the classification shall be deemed nullified as of said
expiry.
i.
If the nullification is to render the constructor unqualified for licensing by

provisions of Sec. 4.1 hereof, his License shall be deemed invalidated
simultaneously with the nullification of the classification.
ii.
If not, to be allowed to retain his License, the constructor shall be required to

apply for classification revision to a classification sustainable, if he is of single
classification, or to designate another Principal classification, if he is of multiclassification rendered ineligible for his current Principal Classification.
b) In case of an unreported Sustaining Technical Employee disassociation and the

constructor allowed a grace period of thirty (30) days to replace the disassociated as
provided in Sec. 10.5 (b) hereof, upon the Board's discovery of the disassociation, the
constructor shall be re-examined for classification eligibility as of both the grace period
expiry and date of the said discovery.
ba) Where a qualified replacement has been under employ by the constructor, since
before the grace period expiry, the constructor shall be allowed to retain the
classification.
bb) Where no qualified replacement is under employ nor was any under employ at grace
period expiry, the classification shall be deemed nullified as of said expiry.
i.
If the nullification is to render the constructor unqualified for licensing by

provisions of Sec. 4.1 hereof, his License shall be deemed simultaneously
invalidated, and any construction contracting activity by him, subsequent
thereto, shall be deemed a cause for disciplinary action.
ii.
If not, to be allowed to retain his License, he shall be required to apply for

classification revision to a sustainable one, if he is of single classification, or
to designate another Principal classification, if he is of multi-classification
rendered ineligible for his Principal classification. In either situation, any
construction contracting activity by him in the classification, subsequent to its
nullification, shall be deemed a cause for disciplinary action, except as
provided in Sec. 5.4 hereof.

bc) Where a qualified replacement has been under employ but since after grace period
expiry, the classification shall be deemed nullified in the interval from grace period
expiry to the employment of the replacement.
i.
If the nullification was to render the constructor unqualified for licensing by

provisions of Sec. 4.1 hereof, his License shall be deemed simultaneously
invalidated, and he shall be required to submit himself to new license
application processing for restoration of his classification and License. Any
construction contracting activity by him during the interval from grace period
expiry to the replacement employment, shall be deemed a cause for
disciplinary action.
ii.
If not, he shall be required to apply for classification revision for restoration of

his classification. Any construction contracting activity by him in the
classification, during the period of its nullification, shall be deemed a cause
for disciplinary action, except as provided in Sec. 5.4 hereof.
c) In all cases, the constructor shall be given written notice by the Secretariat of the Boards
finding and decision, within ten (10) days after such finding and decision, and shall be
allowed thirty (30) days from his receipt thereof, within which to either appeal or, if
required to apply for classification revision or to submit to new License application
processing, to comply. Within said thirty (30) days period, if he fails to appeal, the
decision of the Board shall become final thereafter. If he also fails to comply with the
Board requirement, in case either one is imposed, his classification shall be nullified or his
License invalidated, whichever may be the case.
Sec. 6.5 Category Review
Category review is a re-evaluation of a constructors capability to sustain his current category
and shall be required in connection with the processing of a constructors annual License
renewal application and whenever is warranted by disassociation of Sustaining Technical
Employee of a single-classification constructor or of a multi-classification constructor in his
Principal classification. The Board may also require category review of any constructor
whenever deemed justifiable by the Board. Review criteria and procedure shall be the same
as for category evaluation as stipulated in Sec. 5.7 and Sec. 5.8 hereof, but subject to the
following provisions:
a) Re-Evaluation Scopes
aa) Where required in connection with processing of a constructors annual License
renewal application, the review shall be a general re-evaluation with respect to
all four categorization criteria of Financial Capacity, Equipment Capacity,
Experience of Firm and Experience of Technical Personnel.
ab) Where warranted by disassociation of a Sustaining Technical Employee, the
review shall be confined to the Experience of Technical Personnel as it bears on
a constructors current category.
b) Financial Capacity Re-Evaluation
Re-evaluation of a constructors financial capacity shall be based on his latest audited
financial statements as submitted to the Bureau of Internal Revenue.
ba) In case of financial impairment rendering him ineligible for his current category,
he shall be downgraded to a lower level sustainable.

bb) In case of excessive financial erosion rendering him unqualified for licensing by
provisions of Sec. 4.1 hereof, his License shall be deemed invalidated and
renewal thereof denied. However, the Board may upon his written appeal, allow
him a provisional renewal renewal as defined in Sec. 6.7 hereof, pending his
correction or otherwise rectification of his impairment, but only when justifiable
by the following conditions:
i. That extension of License validity can enhance the constructors prospect of
completing his on-going project(s);
ii. That immediate license revocation can men unemployment problem of social
consequence; and
iii. That the Board is convinced of the constructors ability to rehabilitate.
Such financial impairment correction, if allowed by the Board, shall be affected within a
specific time duration which shall be the validity period of the provisional renewal as
stipulated in Sec. 6.7(bb) hereof.
A constructor so allowed to correct or otherwise rectify his financial impairment shall
be subject to category review at the end of the allowed time duration or earlier upon
his written request, as also provided in Sec. 6.7(bb) hereof.
c) Equipment Capacity Re-Evaluation
Re-evaluation of a constructor's equipment capacity shall be based on his latest
audited financial statements as submitted to the Bureau of Internal Revenue and on
the pertinent documents in support of the constructor's ownership of each equipment.
d) Experience of Firm Re-Evaluation
Re-evaluation of the experience of constructor-firm shall be based on his track record
during the last three years.
e) Technical Personnel Experience Re-evaluation
Experience of a constructor's technical personnel means the experience of his
Sustaining Technical Employee(s) in the classification of his categorization. Reevaluation thereof shall vary with the circumstance of each case and proceed as
follows:
ea) In case of a Sustaining Technical Employee disassociation reported to the Board
and the constructor allowed a period of ninety (90) days to nominate replacement
for Board approval, by provisions of Sec. 10.5(a) hereof, re-evaluation of the
constructor's technical personnel experience shall be upon such nomination, or at
replacement period expiry in the absence of any nomination prior to said expiry,
and shall be based on his technical personnel as of the time of re-evaluation,
inclusive or replacement nominated, if any.
eb) In case of an unreported Sustaining Technical Employee disassociation and the
constructor allowed a grace period of thirty(30) days to replace the disassociated,
by provisions of Sec. 10.5.(b) hereof, re-evaluation of the constructor's technical
personnel experience shall be upon discovery of the disassociation by the Board,
and shall be based on his technical personnel as of grace period expiry. A
technical employee employed after said expiry shall not be considered, unless
the constructor nominates said employee as his Sustaining Technical Employee
and for category upgrading.

ec) In case of disassociation of the lone Sustaining Technical Employee in the

classification of the constructor's categorization, classification review shall
supersede and category review shall be when called for as a sequence of the
classification review and shall proceed as dictated thereby.
f)
Re-Evaluation Time Frames

Re-evaluation of financial capacity and technical personnel experience of a
constructor suffering financial impairment and Sustaining Technical Employee
disassociation, shall each pursue its own time frame, as stipulated above, and the
rating of each shall take effect, separately, on the constructor's category.
Category review shall not be made to serve the purpose of category upgrading, even
if sustainable by a constructor's capability as reviewed. Where a constructor's
capability is found to have remained unchanged or improved, his current category
shall be affirmed; where impaired to so warrant, downgraded to a level sustainable;
and where deteriorated to the extent of rendering him unqualified for licensing, his
License shall be invalidated, unless allowed by the Board, as in above Case (bb), to
correct or otherwise rectify his financial impairment.
In all cases of adverse effect on a constructor's category or License, the constructor
shall be given written notice by the Secretariat of the Board's finding and decision,
within ten (10) days after such finding and decision, and shall be allowed thirty (30)
days from his receipt thereof, within which to appeal. Within said thirty (30) days
period, if he fails to appeal, the decision of the Board shall become final thereafter.
Sec. 6.6 License Renewal Applicants Failing Classification Review and/or Category Review
`
Processing of and action on the License renewal application of constructor found ineligible for
his current classification(s) and/or incapable of sustaining his current category, shall proceed
as determined by classification review and category review of the constructor, as provided in
Secs. 6.4 and 6.5 hereof.
a) In case of impairment in technical personnel experience due to disassociation of a
Sustaining Technical Employee:
aa) Where the impairment dictates nullification of a classification, same shall be excluded
from the renewal, but subject to the provisions following and the provisions of Case
(ac) of this section.
i.
If the classification nullification is to simultaneously invalidate the constructor's

License, as in Cases (ab-I) and (bb-I) of Sec. 6.4 Hereof, renewal of the License
shall be denied; except if the impairment, existing earlier, has been corrected but
since after grace period expiry, as in Case (bc-I) of Sec. 6.4 hereof, renewal shall
be allowed but subject to processing as a new license application.
ii.
If not, as in Cases (ab-ii), (bb-ii) and (bc-ii) of Sec. 6.4 hereof, renewal shall be
subject to prior application by the constructor for classification revision and action
thereon by the Board and shall conform to said Board action.
ab) Where the impairment dictates category downgrading, renewal shall be in the
category sustainable, but subject to the provisions of Case (ac) of this section and
except if the impairment, existing earlier, has been corrected but since after grace
period expiry, as in Case (eb)of Sec 6.5 hereof, renewal shall be subject to prior
application by the constructor for category upgrading and action thereon by the Board
and shall conform to said Board action.

ac) Where technical employee replacement period or grace period, allowed a constructor
th
by provisions of Sec. 10.5(a) and (b) hereof, extends beyond the 30 of June renewal
deadline, license invalidation, classification nullification and/or category downgrading
shall be held in abeyance pending final evaluation at he expiry of whichever is the
period allowed and the constructor shall be given provisional renewal covering the
duration of such pendency, in his current classification(s) but sans category
designation.
b) In case of impairment in financial capacity:

ba) Where the impairment dictates category downgrading, renewal shall be in the
category sustainable by current financial capacity.
bb) Where excessive financial erosion warrants license invalidation, renewal shall be
denied; except as in Case (bb) of Sec.6.5 hereof, where provisional renewal may be
allowed in the constructor's current classification(s) but sans category designation,
on the semestral basis in accordance with provisions of Sec. 6.7 hereof.
c)
In case of impairment both in technical personnel experience and in financial capacity:

ca) Where technical employee replacement period of grace period extends beyond the
renewal deadline but the financial impairment does not jeopardize the constructor's
licensing qualification, as in Case (ac) and Case (ba), respectively of this section,
the constructor shall be allowed provisional renewal similarly as in said Case (ac)
but with financial evaluation based on his current capacity as in said Case (ba).
cb) Where technical employee replacement period or grace period extends beyond the
renewal deadline and the constructor, suffering excessive financial erosion, is
allowed provisional renewal, as in Case (ac) and Case (bb), respectively of this
section, provisional renewal shall be as governed by said Case (bb) but subject to
technical personnel experience evaluation at the expiry of the replacement or grace
period.
d) In all cases of adverse effect on License renewal the constructor shall be given written
notice by the Secretariat of the Board's finding and decision, within ten (10) days after
such finding and decision, and shall be allowed thirty (30) days from his receipt thereof,
within which:
da) To appeal the Board's finding and decision, in writing; or waiving such appeal;
db) To apply for classification revision or category upgrading as require, if in Case (aa-ii)
or Case (ab) of this Section or
dc) To waive availment of technical employee replacement or grace period and request
for regular renewal basing on his current technical personnel capability, in writing, if in
Case (ab) of this section; or
dd) To request for provisional renewal, in writing, if suffering excessive financial erosion
as in Case (bb) or Case (cb) of this section.
In the absence of any of the above action taken by the constructor within the above
said thirty (30) days period, the Board's decision shall become final upon the expiry of
the period and any option allowed the constructor shall be considered as having been
waived.

Sec. 6.7 Provisional License Renewal

Provisional License renewal is intended as an interim authorization pending final resolution of
a license renewal application or of the continued validity of a License and shall be subject tot
he following stipulations:
a) Circumstances Permitting Provisional License
Provisional renewal of a constructor's License shall be permitted only as warranted
By either or both of the following circumstances which necessitate deferment of final
action on the constructor's application for License renewal or the continued validity of his
license:
aa) Where the replacement period or grace period allowed the constructor, by provisions
of Secs. 10.5(a) and (b) hereof, for his replacement of a disassociated Sustaining
Technical Employee, extends beyond the 3oth of June renewal deadline; and
ab) Where the constructor is allowed by the Board to correct or otherwise rectify his
financial impairment, as provided in Sec. 6.5 (bb) hereof.
b) Provisional renewal validity period shall be as determined by the circumstances
warranting such renewal.
ba) If permitted for giving due course to the Sustaining Technical Employee replacement
st
or grace period, such renewal shall be valid from the start of the fiscal year on the 1
of July of from the date of renewal application filing, in case of late renewal as
defined in Sec. 6.9 hereof, to the date of replacement or grace period expiry. A late
renewal, if applied for after such expiry, in effect forfeits the opportunity for
provisional renewal for this purpose. A constructor given a provisional renewal in
this case, shall be subject to classification and/or category review and final
resolution of this renewal application at the end of the validity of the provisional
renewal, or earlier upon his written request.
bb) If permitted, in accordance with the provision of Sec. 6.5 (bb) hereof, to allow a
constructor to correct his financial impairment:
i.
ii.
If in connection with annual License renewal, such renewal shall be valid

from the start of the fiscal year on the first of July or from the date of renewal
application filing, in case of a late renewal, to the end of the first semester of
st
the fiscal year on the 31 of December. A late renewal, if applied for after
the lapse of the first semester, in effect forfeits the opportunity for provisional
renewal for this purpose. In such case of late renewal, however, the Board
may at its own discretion, allow for validity in the second semester of the
th
fiscal year to last till the end thereof on the 30 of June.
If in connection with category review anytime deemed justifiable by the
Board, the provisional renewal shall replace the constructor's current
License and be of a validity period as determined by the Board, which period
st
shall not exceed six (6) months and shall end on the 31 of December or
th
30 of June.
Validity period of provisional renewal for this purpose shall be on the
semestral basis but shall not exceed one (1) semester in duration and shall
be co-terminus with the semester. A constructor given provisional renewal
for this purpose, shall be subject to category review at the end of the validity
of the provisional renewal or earlier upon his written request, as also so
provided in Sec. 6.5 (bb) hereof.

c) Non-Extension and Non-Repetition of Renewal

A provisional renewal shall not be extended in validity period nor shall it be renewed as
such, except:
ca)
In case of renewal resolution delay, thru no fault of the constructor, where

extension of validity period shall be allowed to cover such delay; and
cb)
In case of a constructor with excessive financial erosion who was allowed to correct
his impairment, as provided in Sec. 6.5 (bb) hereof, but who has failed to
rehabilitate sufficiently to qualify for licensing, where repeat provisional renewal
may be allowed if warranted by the following:
i.
That the considerations justifying the original provisional renewal remain to
be valid; and
ii.
That the financial condition of the constructor has been stabilized, if not
improved.
The foregoing notwithstanding, provisional renewal shall, however, not be successively

repeated to aggregate a validity period of more than eighteen (18) months.
Sec. 6.8 License Renewal Certificate
The License renewal certificate shall bear, among others, the following:
a)
b)
c)
d)
e)
Name of the Licensee with the Authorized Managing Officer's name appended thereto;
Original License number and date of issue;
Renewal certificate date of issue and date of expiry;
Constructor category;
Contracting classification(s) with, if a multi-classification constructor, the Principal
classification identified as such;
f) If a Special License, identification of the single specific undertaking/project thereby
authorized and other condition(s) as may have been imposed; and
g) Signatures of the Secretary and the Executive Officer of the Board.
The certificate for provisional renewal shall, likewise, bear the foregoing information and
attestations; except that it shall bear no category designation and shall be conspicuously
annotated as such. The Board may, at its own discretion, adopt a different format and/or
medium for certification of provisional renewal.
Sec. 6.9 Late License Renewal and License Lapsing
A License renewal application filed after the 30th of June renewal deadline but within the fiscal
year applied for, is a late renewal. As such, it shall be subject to a surcharge prescribed in
Sec. 9.1(e) hereof. Additionally, if the applicant was engaged in any construction contracting
activity after the License renewal deadline, he shall be disciplinary action as provided in Sec.
11.1 hereof, for operating with an expired License. A License for which no renewal was
applied for one whole fiscal year immediately following its expiry, shall be deemed lapsed and
shall be cancelled by the Board, without prejudice to the Board's taking any disciplinary action
against the Licensee for practicing construction contracting without a valid License, if he was
engaged in any such activity after License expiry.
A License which was suspended and has remained in suspension for more than twelve (12)
months due to the Licensee's non-compliance with the requirements and conditions set forth
by the Board for lifting of suspension, shall likewise be deemed lapsed and cancelled by the
Board. The provision, however, shall not apply to a fixed period suspension, as provided in

Sec. 13.1 hereof, imposed as a penalty by itself by the Board. Such penalty suspension may
exceed twelve (12) months without prejudice to License renewal, or extend beyond License
deadline with no liability of the License for late renewal surcharge provided that renewal of the
License is applied for upon termination of the suspension period.
RULE 7 LICENSE AMENDMENTS

Sec. 7.1 Category Upgrading
A constructor who has been licensed for more than six (6) months, may apply for upgrading of
his category. Such an application shall be processed in accordance with the provisions of
Sec. 5.7 and 5.8 hereof, for category evaluation.
Sec. 7.2 Classification Revision
A constructor who has been licensed for more than six (6) months, may apply for any of the
following classification revisions:
a) Change of classification of a single-classification constructor;
b) Change of Principal classification of a multi-classification constructor by replacement with
a secondary classification;
c) Change of Principal classification of multi-classification constructor by replacement with a
new additional classification; and
d) Addition of a secondary classification.
Processing of an application for classification revision shall proceed as provided in
Sec. 5.2 hereof. Revisions (a), (b) and (c) shall be subject to category evaluation in
accordance with the provisions of Sec. 5.7 and Sec. 5.8 hereof.
Sec. 7.3 Application for Classification Revision and Category Upgrading Jointly with License Renewal
Classification revision and/or category upgrading may be applied for jointly with License
renewal, where documents of common requirement need not be duplicated.
In case category upgrading is jointly applied for, category review in the License renewal
processing shall be waived in favor of category evaluation.
Sec. 7.4 Other License Amendments
A constructor may apply with the Board for License amendment:
a) To change his Authorized managing Officer as previously approved by the Board, or
b) To change his firm's name as licensed
Any of such changes is subject to prior approval by the Board as so stipulated in Sec. 10.6
and Sec. 10.9 hereof.

RULE 8 ACCREDITATION OF CONSTRUCTORS

Sec. 8.1 Accreditation
Accreditation is hereby instituted to be extended to constructors showing exemplary
construction contracting performance and is not intended to be a prerequisite, as the license
is, for engaging in construction contracting.
Accreditation shall be by contracting sub-classification and shall involve:
a) An assessment of the constructor's worthiness for accreditation as evidenced by the
quality of his overall performance as a constructor; and
b) An evaluation of the constructor's Index Rating with respect to a specific contracting subclassification, as an indicator of his performance capability therein.
Where a constructor is accredited in more than one sub-classification, an Index Rating shall
be evaluated for each of the sub-classifications.
Sec. 8.2 Quality of Overall Performance
Overall performance shall mean and include the performance of the constructor-firm in
construction and as a business entity, and of the firm's key personnel and principal(s) in their
respective career or occupation.
Quality of overall performance shall be as evidenced by past records and shall include such
aspects as:
a) Quality of projects completed;
b) Faithfulness in contract implementation;
c) Relationship with clientele, design-professionals, sub-contractors, suppliers and labor;
and
d) Credit standing and general business reputation.
Sec. 8.3 Index Rating
The Index Rating is intended to be an indicator of an accredited constructor's performance
capability in a specific contracting sub-classification and is to be expressed in two (2)
numerical figures in tandem, intended to reflect the following in sequence:
a) Effective Contracting Capacity in term of Finance
The first figure is to reflect the Effective Contracting Capacity in term of Finance or ECCF
which shall mean the aggregate peso value of contract work, rounded to the nearest
million, that an accredited constructor's financial resources can sustain in a period of
twelve (12) months. Where a constructor is accredited in more than one subclassification, this figure shall represent the aggregate peso value of contract work in all
the sub-classifications.
b) Effective Contracting Capacity as an Organization

The second figure is to reflect the Effective Contracting Capacity as an Organization or

ECO which shall mean the largest single peso value project or the aggregate peso value
of projects of a sub-classification, rounded to the nearest million, that the organization of
an accredited constructor is capable of undertaking in the sub-classification at any one
time.
Derivation of Index Rating shall be based on performance factors as prescribed and
defined in Sec. 8.4 hereof. Formulae and statistical constants for such derivation shall be
as prescribed and detailed in Appendix II hereof. The Board, however, shall be
empowered to update the formulae and/or statistical constants whenever deemed
necessary by the Board, to render them relevant to and compatible with actual prevailing
conditions.
Sec. 8.4 Performance Factors in Index Rating
Derivation of the Index Rating of an accreditation candidate in a sub-classification shall be
based on the following performance factors which relate to the same aspects of a
constructor's performance capability as the categorization criteria but considered in a different
perspective:
a)
Financial Capacity
Financial capacity shall be the composite value of the following elements:
aa) Networth of firm;
ab) Liquidity of firm in term of current liabilities to current assets ratio;
ac) Solvency of firm in term of debt to equity ratio; and
ad) Statistical constants relevant to the construction industry as determined by the
Board.
b) Equipment Capacity
Equipment capacity shall be in term of the composite value of the following:
ba) Value of specialty equipment employed in the sub-classification being evaluated for
Index Rating;
bb) Condition of the above said equipment, expressed in grades in accordance with a
grading scale as determined by the Board;
bc) Total value of equipment pool; and
bd) Equipment maintenance facilities, expressed in grades in accordance with a grading
scale as determined by the Board.
Multi-purpose equipment may be listed in several sub-classifications where constructor is
to be accredited in more than one sub-classification.
c) Performance Experience of Firm
Performance experience of firm shall be the track record of an accreditation
Candidate firm, in the sub-classification being evaluated for Index Rating and during a
period not to exceed ten (10) years immediately preceding the start of accreditation
application processing, reflect in terms of:

ca) Largest single peso value project of the sub-classification, executed and completed
by the accreditation candidate firm as the responsible constructor;
cb) Number and peso value sizes of other major projects of the sub- classification,
executed and completed by the accreditation candidate firm as the responsible
constructor;
cc) Quality of performance in each of the above said projects, expressed in grades in
accordance with a grading scale as determined by the Board.
d) Performance Experience of Technical Personnel
Performance experience of technical personnel shall be the aggregate construction execution
and contract implementation experience of the Sustaining Technical Employees of the
accreditation candidate firm in the sub-classification being evaluated for Index Rating and
during a period not to exceed ten (10) years immediately preceding the start of accreditation
application processing, reflected in terms of:
da) Largest single peso value project of the sub-classification, executed and completed
with the direct involvement of any of the Sustaining Technical Employees, regardless
of employment affiliation;
db) Number and peso value sizes of other major projects of the sub-classification,
executed and completed with the direct involvement of any one or more of the
Sustaining Technical Employees, while employed with the accreditation candidate
firm; and
dc) Number and peso value sizes of other major projects of the sub-classification,
executed and completed with the direct involvement of each of the Sustaining
Technical Employees, previous to his employment with the accreditation candidate
firm.
Sec. 8.5 Eligibility for Accreditation
Accreditation shall be applied for and to be eligible for and to be eligible as a candidate
therefor, a constructor shall:
a) Have been actively engaged in construction contracting, as a duly licensed constructor,
for at least thirty-six (36) months immediately prior to his application for accreditation.
b) Have been engaged in construction of projects requiring engineering knowledge where
faulty construction execution or malperformance can be of prejudicial consequence to
public safety;
c) Have been in good standing with the Board; and
d) Be of constructor category "C" or higher.
Sec. 8.6 Application for Accreditation
A licensed constructor, eligible as a candidate for accreditation by provisions of Sec. 8.5
hereof, may apply for accreditation thru the following procedures:
a) Pre-Application Preparation
In preparation for the application, the applicant shall secure the documentation,
authentication and evaluation of all the constituent from any of the Recognized Rating

Entities, listed with the Board as provided in Sec. 8.7 hereof. Where necessitated by the
specialization scope limitation of a Recognized Rating Entity, the applicant shall secure
such documentation, authentication and evaluation from more than one such entity.
b) Application Composition and Filing
Application shall be filed with the Secretariat and shall comprise of:
ba)
Application properly accomplished on forms as prescribed by the Board:
bb)
Official report(s) and certification(s) by the Recognized Rating Entity/Entities on

documentation; authentication and evaluation of the constituent elements of the
applicant's performance factors;
bc)
Evidences of satisfactory construction and contract implementation, such as project

completion certificates, final acceptance certificates, commendations or citations
from project owners or design-professionals, and others;
bd)
Notarized authorization for the Board to solicit or seek from any source, data and
information concerning the applicant which are relevant to and material for
processing and consideration of the accreditation application; and
be) Other documents which the Board may require or which the applicant may deem to
be supportive of his accreditation application.
All accreditation application submittals, either prepared by the constructor-applicant or by
the Recognized Rating Entity/Entities, shall be under oath and considered public
documents. The constructor-applicant or the Recognized Rating Entity/Entities shall be
liable for any legal consequence of any misinterpretation or omission in their respective
preparations to subvert the accreditation process.
Sec. 8.7 Recognized Rating Entities
In the interest of availing of third-party expertise in the accreditation process, the Board shall
maintain a list of accounting, management, engineering and such other consultancy firms, of
relevant expertise and recognized integrity and to be known as the Recognized Rating
Entities, whose documentation, authentication and evaluation of the constituent elements of
the performance factors as defined in Sec.8.4 hereof, are to be deemed by the Board as
acceptable supplementation and complementation of the accreditation processing by the
Board. It shall be the responsibility of an accreditation applicant to engage and commission
the Recognized Rating Entity/Entities of his choice to effect the said documentation,
authentication and evaluation.
Sec. 8.8 Accreditation Application Processing
Accreditation application processing by the Board shall consist of:
a) Verification and confirmation of the application documents;
b) Interview of the applicant;
c) Examination and consideration of the application and, if meritorious, Index Rating
evaluation; and
d) Action on the application as follows:

da)
If favorably considered, recommendation to the Authority for accreditation of the

applicant; as follows;
db)
If not considered favorably, advice to the applicant of his application being deemed
"Insufficient".
The Board may cause the publication of the Information in any accreditation application, at its
discretion and when deemed by the Board to be contributory to processing of the application.
Processing of an accreditation application shall commence immediately after full compliance
of the application requirements by the applicant. Processing time, however, shall be on a
case to case basis, depending on the complexity of each case, and shall be as long as is
necessary for thoroughness and comprehensiveness in researching past-records, in probing
into various phases and aspects, and in soliciting information from various sources.
Sec. 8.9 Accreditation Approval
Action on an accreditation by the Board shall only be recommendation approval authority
shall be vested with the Authority.
Sec. 8.10 Accreditation Certification
Accreditation shall be evidenced by a certificate issued by the Board. The certificate shall be
of a format and with a text as prescribed by the Board, which text shall include, among other
relevant information, the following,
a) Name of the constructor;
b) Accreditation certificate number;
c) Constructor's License number;
d) Date of accreditation and date of expiry;
e) Sub-classification(s) accredited and corresponding Index Rating(s);
and
f)
Signatures of the Chairman and members of the Board and the Chairman of the
Authority.
Sec. 8.11 Accreditation Validity

Accreditation shall be valid for a period of twenty-four (24) months, reckoned from the date of
accreditation. The date of accreditation shall be the first day of the ensuing quarter
immediately after the final accreditation approval of an accreditation application by the
Authority.
Sec. 8.12 Re-Accreditation
Re-accreditation shall mean an accreditation to succeed another and shall, therefore, be
subject to the same requirements and procedures as prescribed for accreditation. Reaccreditation may be applied for after expiry of the applicant-constructor's current
accreditation. The lapsing of a constructor's accreditation shall be of no impediment to his reaccreditation. It may also be applied for before expiry of the applicant-constructor's current
accreditation, provided not earlier than (4) months before said expiry.

Where a re-accreditation application is filed and received by the Secretariat before expiry of
the applicant-constructor's current accreditation but not later than three (3) months before
expiry, in case of failure of the Board or the Authority to have the application finally acted
upon before expiry, in case of failure of the Board or the Authority to have the application
finally acted upon before expiry of the applicant-constructor's current accreditation, the Board
shall, in the absence of any impediment to re-accreditation and upon the written request of
the applicant-constructor, issue an interim certification to attest to the applicant-constructor's
re-accreditation application being under processing and to extend the validity of his current
accreditation until revoked by the Board.
Sec. 8.13 Index Rating Review
An accredited constructor shall report to the Board any major change, during validity of his
current accreditation, in any of his performance factors as defined in Sec. 8.4 hereof, which
may result in his Index Rating downgrading. Said report shall be in writing and on time to be
received by the Secretariat not later than thirty (30) days after occurrence of such change.
Where so warranted by such change, revised Index rating(s) shall be derived by the Board.
The Accreditation Certificate previously issued shall be recalled by the Board and a new
certificate, bearing the revised Index Rating (s) shall be issued to the accredited constructor
to cover the remainder of his current accreditation validity period.
An accredited constructor subject to such an Index Rating downgrading, however, shall be
allowed by the Board to effect any necessary remedial measure to avoid or abate the
downgrading, subject to the following stipulations:
a) A written request therefor, shall be submitted by the constructor and received by the
constructor and received by the Secretariat, within thirty (30) days from date of
occurrence of the causative change.
b) Any remedial measure necessary shall be effected within ninety (90) days, likewise, from
date of occurrence of the causative change.
c) No Index Rating upgrading shall be allowed, even if justifiable by a remedial measure
affected,
d) The constructor shall secure the documentation, authentication and evaluation of the
remedial measure(s) effected and the performance factor(s) involved, from any of the
recognized Rating Entities, and submit to reevaluation by the Board.
Sec. 8.14 Index Rating Upgrading
An accredited constructor may apply for upgrading of his Index Rating(s). Requirements and
procedures for application for Index Rating upgrading shall be the same as for accreditation
application as provided in Sec. 8.6 hereof.
Sec. 8.15 Accreditation or Re-Accreditation Denial
Any of the following shall be a sufficient ground for denying accreditation or re-accreditation of
a constructor:
a) Misrepresentation in the application for accreditation or re-accreditation;
c) Ineligibility for accreditation by stipulations of Sec. 8.5 hereof;
c) Unsatisfactoriness in quality of overall performance as defined in Sec. 8.2 hereof;

d) Inadequacy in financial resources, equipment resources or technical staff competence;

and
e) In case of re-accreditation, failure of the applicant-constructor to report to the Board any
major change in any of his performance and as stipulated in Sec. 8.13 hereof.
Sec. 8.16 Accreditation Revocation
The accreditation of a constructor may be revoked on any of the following grounds:
a) Loss of eligibility for accreditation as stipulated in Sec. 8.5 hereof; and
b) Bad performance during the period of validity of his accreditation to convincingly discredit
the quality of his overall performance as defined in Sec. 8.2 hereof and evaluated during
the approval of his accreditation.
RULE 9 LICENSING AND ACCREDITATION FEES

Sec. 9.1 Licensing Fees
Licensing and other related and incidental services shall be subject to assessment of the
following fees, each payable and applicable as stipulated:
a) License application Screening Fee, in lieu of the examination fee in R.A. 4566, payable
upon filing of License application and applicable to:
aa) A new License application.
b) License Fee, payable before issuance of the License certificate and applicable to:
A new License application approved.
c) License Re-Issue Fee for re-issuance of an original or renewal License certificate, or a
pair thereof, payable before re-issuance and occasioned by and applicable to:
ca)
A change of business name,
cb)
A change of Authorized Managing Officer,
cc)
A classification revision,
cd)
A category upgrading or downgrading, and
ce)
A replacement for a lost/damaged certificate.
d) License Renewal Fee, payable upon filing of License Renewal application and applicable
to:
da)
An annual License renewal application.
e) Surcharge, as an addition to and payable simultaneously with the License Renewal Fee
and applicable to:
ea)
A late License renewal as defined in Sec. 6.9 hereof.

f)
g)
Classification Fee for classification eligibility evaluation, payable on a per-classification

basis, before License issuance or re-issuance as the case may be, and applicable to:
fa)
A new License application,
fb)
A classification addition,
fc)
A classification revision involving the addition or introduction of a new classification,

and
fd)
A change of the lone Sustaining Technical Employee in a classification sustained

by only one such employee.
Category Evaluation Fee, payable before license issuance or re-issuance as the case
may be, and applicable to:
ga)
A new License application,
gb)
A change of classification of a single-classification constructor,
gc)
A change of Principal classification of a multi-classification constructor, and
gd)
A category upgrading.
h) Category Review Fee for review of a constructor's capability to sustain his current
category, payable before License re-issuance or upon filing of License renewal
application as the case may be, and applicable to:
ha)
i)
A disassociation of a Sustaining Technical Employee in the lone classification of a

single-classification constructor or in the Principal classification of a multiclassification constructor, provided that:
i.
Where category upgrading is allowable and is applied for by the constructor,

this fee shall be waived and the Category Evaluation Fee assessed instead;
and
ii.
A constructor who has been licensed or upgraded in category not more than
four (4) months prior to his License renewal application, shall be exempt
from payment of this fee.
Additional License Fee, payable before issuance of the License certificate and applicable
to:
ia)
A new License application where the applicant was engaged in construction or

construction-related activities prior to securing his License, and
ib) A License renewal application where the applicant was engaged in construction or
construction-related activities or after expiry of his License, or while his License was
under suspension.
Sec. 9.2 Accreditation Fees
Accreditation and other related and incidental services shall be subject to a assessment of the
following fees, each payable and applicable as stipulated:

a) Accreditation Eligibility Screening Fee, payable upon filling of the accreditation application
and applicable to:
aa) An accreditation application, and
ab) A re-accreditation application.
b)
Accreditation Fee for processing, Index Rating and other related functions in approving
an accreditation or re-accreditation application, payable on a per-sub-classification basis,
within ten (10) days from receipt by the applicant of a payment advice from the Board,
and applicable to:
ba) An accreditation application, and
bb) A re-accreditation application.
c)
Accreditation Certificate Re-Issue Fee for re-issuance of a certificate of accreditation or

re-accreditation, payable before such re-issuance and applicable to:
ca) A change in Index Rating, and
cb) A replacement for a lost/damaged certificate.
d)
Index Rating Upgrading Fee for re-derivation of Index Rating, payable on a persubclassification basis, within ten (10) days from receipt by the applicant of a payment
advice from the Board; and applicable to:
da) An application for Index Rating upgrading.
Sec. 9.3 Amount of Fees

The amount of each of the various licensing and accreditation fees as stipulated in Sec. 9.1
hereof, shall be as tabulated in Appendix III hereof. The Board, however, shall be empowered to
increase or decrease the amount of any of the fees, to delete any thereof, or to institute any new
fee, whenever deemed necessary by the Board, but subject to approval by the Authority and to
compliance with legal requirements and procedures.
Sec. 9.4 Payment of Fees
Payment of any of the various licensing and accreditation fees shall be made to the Cashier of
the Authority. Any such payment made shall not be refundable.
RULE 10 RIGHTS AND DUTIES OF LICENSED CONSTRUCTORS

Sec. 10.1 Regular License Authorization
A licensed constructor, issued a Regular License as defined in Sec.3.1(a) thereof, is authorized
to engage in construction contracting in the Philippines, within the field and scope of his
classification(s) in accordance with the provisions of Sec. 5.4 hereof. In case of a provisionally
renewed License, however, such authorization shall be subject to any restriction as may be
imposed by the Board.

Sec. 10.2 Special License Authorization

A licensed constructor, issued a Special License as defined in Sec. 3.1(b) is authorized to
engage only in one single specific construction undertaking/project in the Philippines. In case of
a provisionally renewed License, such authorization shall be further subject to any restriction as
may be imposed by the Board.
Sec. 10.3 Joint Operation Licensing
A joint venture of licensed constructors as defined in Sec. 1.1(g) hereof, notwithstanding each
being individually licensed, shall secure an additional License as a joint venture for it to be legally
authorized to submit a bid, enter into a construction contract; implement a project or otherwise
act as a licensed constructor.
A consortium of licensed constructor(s) and non-constructor(s) as defined in Sec.1.1(h) hereof,
shall likewise secure a License as a consortium for it to be legally authorized to submit a bid,
enter into a construction contract, implement a project or otherwise act as a licensed constructor.
Sec. 10.4 Renewal of License
th
A License shall be renewed every year on or before the 30 of June to have an uninterrupted
validity. In a late renewal as defined in Sec. 6.9 hereof, the involved constructor shall be subject
to the late renewal surcharge and if he was engaged in any construction contracting activity
th
during the period from the 30 of June deadline to the filing of his renewal application, he may be
further subject to the additional License fee and/or disciplinary action for operating with an
expired Licensed.
Sec. 10.5 Disassociation of a Sustaining Technical Employee
Disassociation of a Sustaining Technical Employee, by employment termination, death or any
other cause, shall be reported in writing to the Board by the employer-constructor, within thirty
(30) days from date of disassociation. A constructor so affected, shall be entitled to a time
period for replacing the disassociated employee, subject to the following provisions:
a) A constructor complying with the above stipulated reporting requirement, shall be allowed a
replacement period of ninety (90) days from date of disassociation to nominate a replacement
for approval by the Board. Within this period, he shall be allowed repeated nominations, as
long as no nominee has yet been approved by the Board.
b) A constructor failing to so comply, shall be entitled to a grace period of thirty (30) days from
date of disassociation, within which a replacement nominee for approval by the Board, sans
nomination by the constructor.
During the replacement or grace period, the constructor's current License shall remain in force. It
shall also be the duty of a disassociated Sustaining Technical Employee to give written notice to
the Board of his disassociation, unless in case of death, within thirty (30) days from date of
disassociation. Failure to notify shall be an impediment to his eligibility as a Sustaining Technical
Employee, an Authorized Managing Officer, or a License applicant in any future transaction with
the Board.
Sec. 10.6 Change of an Authorized Managing Officer
Change of an Authorized Managing Officer shall be subject to prior approval by the Board. Any
act by a constructor's representative not previously approved as the Authorized Managing Officer
by the Board, for and in behalf of the constructor in any transaction with the Board, shall be

deemed not valid. The constructor shall bear whatever may be the consequence of such
invalidity.
In case of disassociation of an Authorized Managing Officer and the affected constructor is unable
to immediately appoint a replacement to effect a change, the constructor shall give written notice
to the Board to this effect. Upon such notice, he shall be allowed to designate an Officer-inCharge, for acknowledgement by the Board, to act in the capacity of an Authorized Managing
Officer, pending final appointment of a replacement therefor. The final appointment of a
replacement Authorized Managing Officer, for approval by the Board, shall be made within ninety
(90) days from date of disassociation. It shall be the duty of a disassociated Authorized Managing
Officer to give written notice to the Board of his Board of his disassociation, unless in case of
death, within thirty (30) days from date of disassociation. Failure to so notify shall be an
impediment to his eligibility as an Authorized Managing Officer, a Sustaining Technical Employee,
or a License applicant in any future transaction with the Board.
Sec. 10.7 Change in an Accreditation Performance Factor
As also provided in Sec. 8.13 hereof, an accredited constructor shall report in writing to the Board
any change in any of his performance factors which may affect his Index Rating, within thirty (30)
days from date of occurrence of the change and submit himself to Index Rating review by the
Board.
Sec. 10.8 Change of Address
A constructor shall give written notice to the Board of any change in his address as previously
recorded with the Board, as soon as practicable but not later than fifteen (15) days after the
change. A constructor who fails to so notify shall bear whatever may be the consequence of nondelivery of any communication from the Board.
Sec. 10.9 Change of Name
A Constructor's name shall not be changed without the approval of the Board. The use, by a
constructor, of any name other than that by which he is licensed, in any construction contracting
activity shall be deemed as engaging in such activity without a License and may be considered a
cause for disciplinary action.
Sec. 10.10 Change in Business Organization Style
A re-structuring of a constructor's organization from sole proprietorship to partnership or
corporation, or from partnership to corporation, evolves a new business or juridical entity which
shall warrant the cancellation of his License. The new entity shall be required to apply for
licensing as a new applicant.
The foregoing notwithstanding, however, where the organization before the re-structuring still
retains the majority in equity distribution and the management control, the Board may consider an
application for transfer of the license to the new entity, subject to terms and conditions which the
Board may impose.
Sec. 10.11 Introduction of Foreign Entity
A constructor shall give a written notice to the Board of any introduction of foreign equity into his
firm within thirty (30) days from occurrence of such introduction.

RULES 11 DISCIPLINARY ACTION, PROCEEDINGS AND DECISION

Sec. 11.1 Disciplinary Action
A constructor found guilty of any of the causes for disciplinary action, as stipulated in Sec. 11.2
hereof, shall be subject to any or a practicable combination of any of the following disciplinary
actions, as determined by the Board with due course given to the disciplinary proceedings:
a) Revocation of License and denial of the renewal thereof;
b) Suspension of license for a fixed period as determined by the Board to correspond to the
cause or causes for disciplinary action, or for an indefinite period with the lifting thereof
conditioned upon the constructor's compliance with the requirements and conditions set forth
by the Board for such lifting; and
c) Imposition of a fine in accordance with the schedules detailed in Appendix IV hereof.
License invalidation or revocation, renewal denial or License suspension of a constructor shall
not serve to relieve him of any existing contract obligation nor to prevent his pursuance
thereof. Where he has project(s) on-going at the time of imposition of the disciplinary action,
he shall be given written authorization by the Board to continue operating on the same. Such
authorization shall be co-terminus with the on-going project(s) and shall not, in any manner,
be used to engage in any construction contracting activity not relevant to the implementation
of said on-going project(s).
Imposition of a fine shall apply mainly to violations of engaging in construction contracting
without a License or with an expired or with an expired or revoked License, and of operating
in a classification not authorized by License; although the Board, at its own discretion, may
commute a License suspension or part of the duration thereof into a fine. The Board may
make its own findings of violations and impose fines without need of court intervention and
require the compliance thereof as a pre-condition for License issuance or renewal.
Sec. 11.2 Causes for Disciplinary Action
Any of the following acts or omissions by a constructor shall constitute a cause for disciplinary
action against him:
a) Malpractices
aa)
Willful and deliberate abandonment without lawful and/or just excuse of any
construction project or operation engaged in or undertaken by him as a constructor;
ab)
Willful material and substantial departure from or disregard of plans and/or

specifications in any material respect, and prejudicial to another without consent of
the owner or the person entitled to have the particular construction project or
operation completed in accordance with such plans and/or specifications or their
duly authorized representations;
ac)
Willful material misrepresentation and/or use of spurious documents in the pursuit

of his business;
ad)
Doing of any willful or fraudulent act as a consequence of which another is injured

or damaged:
b) Infractions of the Law

ba) Failure to comply with the provisions of the Law, defined in Sec. 1.1 (a) hereof, and
these rules and regulations, including but not limited to:
i.
Operating in a classification not authorized by his License;
ii.
Engaging in construction contracting with an expired or lapsed License;
iii. Retiring from business without advising the Board and surrendering his License,
resulting in the illegal use of his License by another with or without his
knowledge;
bb) Aiding or abetting an unlicensed person to evade the provisions of the Law and
these rules and regulations, or knowingly combining or conspiring with, or allowing
his License to be used by, or acting as an agent or partner or associate or otherwise
of an unlicensed person with the intent to evade the provisions of the Law and these
rules and regulations;
c) Willful misrepresentation of a material and substantial fact in obtaining his License and in
any other application or representation with the Board;
d) Conviction by a court of competent jurisdiction of any offense involving moral turpitude or
the commission of which would, in the opinion of the Board, render him unit to be the
holder of the License; and
e) Active participation in the performance by any person or firm of any act or omission
constituting a cause for disciplinary action under the Law.
Sec. 11.3 Jurisdiction
The Board shall have jurisdiction over:
a) Any act or omission, by any licensed constructor, constituting a cause for disciplinary
action; and
c) Any of the following offenses or misdemeanor by any person, of:
ba) Advertising any title tending to convey the impression that he is a constructor within
the purview of the Law, without first securing a License;
bb) Submitting or attempting to submit a bid to construct, or entering into a contract or
undertaking to construct, or assuming charge in a supervisory capacity of a
construction work, without first securing a License;
bc) Presenting or filing the License certificate of another as his own, or otherwise
impersonating a licensed constructor;
bd) Giving false evidence of any kind to the Board or any member thereof, in any
application or representation with the Board;
be) Using an expired, suspended or revoked License; and
bf)
Allowing the use of his License by another.
The Board shall, upon the verified complaint in writing of any person or upon its own motion,
investigate and take appropriate disciplinary action against and/or impose a fine on any

licensed constructor or any person found to be guilty of any alleged act or omission
constituting a cause for disciplinary action or of misdemeanor.
The lapsing or suspension of a License by operation of Law, or by order or decision of the
Board or other competent authority, or the voluntary surrender or retirement of a License shall
not deprive the Board of jurisdiction to proceed with any investigation of or action or
disciplinary proceeding against such License, or to render a decision suspending or revoking
it.
Sec. 11.4 Prescription
An accusation or charge against a constructor shall be filed within one (1) year after the act or
omission alleged as the ground therefor, except an accusation alleging willful
misrepresentation of a material and substantial fact in any application or representation with
the Board which may be filed within two (2) years after discovery by the Board of the alleged
fact constituting misrepresentation or fraud.
Sec. 11.5 Complaint
A complaint against a licensed constructor for any cause as provided by the Law and rules
may be filed by any person, or any firm through its duly authorized representative, or the
Board itself may motu propio file the charge.
The complaint shall be in writing and under oath; shall set forth clearly, distinctly and
concisely therein, the charge(s) or offense(s) complained of, supported by affidavit or material
evidence, if any; and shall be filed in triplicate with the Secretariat.
The Executive Officer of the Board shall number complaints in consecutive order of their
receipt.
Sec. 11.6 Complaint Withdrawal
A complaint may be withdrawn by the complainant in writing and under oath. The Board shall
forthwith dismiss the case; unless the Board, in the interest of the public and for protection of
the integrity of the construction contracting industry, shall deem it necessary to prosecute the
case, notwithstanding the withdrawal by the complainant.
Sec. 11.7 Service and Answer
In case of a complainant appearing to have merit, a copy thereof shall be served upon the
respondent, in person or by registered mail. The respondent shall be required to answer in
writing and in triplicate, within ten (10) days after his receipt of the copy of the complaint.
In case of a complaint considered by the Board to be without merit, same shall be dismissed
without prejudice to the filing of another complaint based on the same cause of action as may
be warranted. The complainant shall be duly notified of such action by the Board.
Section 11.8 Evidence
As much as possible, the rules of evidence shall be adhered to in the reception of evidence.
However, technical error(s) in the admission of evidence which do not prejudice the
substantial rights of any of the parties shall not vitiate the proceedings.
Sec. 11.9 Memorandum
The Board may, at its own discretion; require the complainant or respondent or both, through
their respective counsel should they have any, to submit a memorandum in support of their

respective defenses as may be warranted by the situation with respect to their arguments
relative to the facts in issue.
Sec. 11.10 Decision
The decision shall be in writing, signed by all or at least a majority of the members of the
Board and attested by the Secretary and the Executive Officer of the Board, and shall contain
clear and distinct findings of fats and of law on which it is based. If the complainant is based
on breach of the rules and regulations or the Code of Ethics, the same shall also be stated in
the decision.
Sec. 11.11 Petition for Reconsideration
A petition for reconsideration shall be filed within thirty (30) days after notice of decision on
the case and shall be for either or both of the following two causes, provided that only one
petition for reconsideration for cause shall be entertained by the Board:
a) The decision is not in conformity with the evidence and/or facts presented; and
b) Newly discovered evidence or facts which could not, with reasonable diligence, be
discovered and produced at the investigation and which when presented would probably
alter the result of the investigation.
A petition not consistent with the above stipulated time and cause qualifications shall be
considered as filed without action and shall not be entertained; except in case of petition filed
later than thirty (30) days after notice of decision where the Board, for special reason(s) which
must be stated in its ensuing decision, may decide to act on the petition.
RULES 12 LICENSE DENIAL, AND CANCELLATION

Sec. 12.1 License Denial
Any of the following shall be a sufficient ground for disapproval of a License application and
for denial of licensing:
a) Willful misrepresentation of a material and substantial fact in the License application;
b) Failure of the applicant to meet the required minimum qualifications for licensing as
stipulated in sec. 4.1 hereof;
c) Failure of any Sustaining technical Employee of the applicant to meet the required
qualifications as stipulated in Sec. 4.2 hereof;
d) Failure of the applicant's Authorized managing officer to meet the required qualifications
as stipulated in Sec. 4.3 hereof;
e) Involvement of the applicant, in any of the following capacities, in any construction
malperformance of grave consequence, suggestive of negligence, incompetence and/or
malpractice in the direction or management of operation and/or in the system and method
of implementation of the construction:
ea) A partner or stockholder of more than thirty percent (30%) equity holding of the firm
in charge of the constuction;

eb) A Sustaining Technical Employee or the Authorized Managing Officer of the firm in
charge of the construction; or
ec) A person or firm of authority over the system or method of implementation of the
construction;
f)
Involvement of the applicant by himself or in collaboration with any other person or firm, in
any act or omission liable for disciplinary action, as stipulated in Sec. 11.2 hereof, of
which he or the other person or firm was found guilty by the board;
g) Conviction of the applicant by a court of competent jurisdiction of any offense involving

moral turpitude or the commission of which would, in the opinion of the Board, render him
unfit to be a holder of the License;
h) Ownership of more than thirty percent (30%) of the applicant's equity by a person(s) or
firms(s) imputed with above cited Grounds (e), (f) and (g); and
i)
Any other ground for denial deemed by the Board to be in the interest of the construction
industry and/or of the general public.
The Board, however, shall be empowered to moderate or otherwise modify the application of
the above cited grounds (e), (f), (g) and (h), if justifiable by evidence of mitigating
circumstance and of any loss or injury resulted therefrom having been amply and properly
restituted and if there is deterrent against repetition or recurrence of the same.
Sec. 12.2 License Renewal Denial
Any of the following shall be a sufficient ground for disapproval of a License renewal
application and for license renewal denial:
a) Willful misrepresentation of a material and substantial fact in the License renewal
applications;
b) Failure of the License renewal applicant to maintain his licensing qualifications to meet
the minimum requirements, as stipulated in Sec. 4.1 hereof:
c) Lapsing of the License renewal applicant's license, as defined in Sec. 6.9 hereof;
d) Suspension or revocation of the License as a disciplinary action;
e) Non-payment by the License renewal applicant fine imposed by the Board as a
disciplinary action;
f)
Change in the License renewal applicant's equity ownership to occasion the holding of
more than thirty percent (30%) thereof by person(s) or firm(s) of unsuitable qualification,
as provided in Sec. 12.1 (h) hereof; and
g) Construction malperformance of grave consequence by the License renewal applicant,

determined by a competent authority to be due to applicant's negligence, incompetence
and/or malpractice.
The Board shall be empowered to moderate or otherwise modify the application of above
cited Grounds (f) and (g) in a manner not incompatible with the purpose and intent of the Law
and when justifiable by legal considerations.

The foregoing notwithstanding, License renewal denial shall be subject to the provisions of
Sec. 6.7 hereof on provisional renewal.
Sec. 12.3 Permissible Operation after License Non-Renewal
In any case of License non-renewal, invalidation, cancellation or revocation, where the
involved licensee-constructor has project(s) ongoing at the time of non-renewal, invalidation,
cancellation or revocation, he shall be given written authority by the Board to continue with
the operation thereof until completion of the same.
Sec. 12. 4 Retirement from Construction Contracting
A licensed constructor retiring from construction contracting shall advise the Board in writing
of his retirement and shall surrender is original License and latest renewal certificates for
cancellation by the Board, within thirty (30) days from date of retirement. A constructor who
fails to comply with this retirement shall be held responsible for any unauthorized or illegal
use of his License by any party. Such non-compliance shall also be an impediment to his
eligibility as a License applicant, a Sustaining technical Employee or an Authorized Managing
Officer in any future transaction with the Board.
Sec. 12.4 Retirement from Construction Contracting
A licensed constructor retiring from construction contracting shall advise the Board in writing
of his retirement and shall surrender his original License and latest renewal certificates for
cancellation by the Board, within thirty (30) days from date of retirement. A constructor who
fails to comply with this requirement shall be held responsible for any unauthorized or illegal
use of his License by any party. Such non-compliance shall also be an impediment to his
eligibility as a License applicant, a Sustaining technical Employee or an Authorized Managing
Officer in any future transaction with the Board.
Sec. 12.5 Death or Disassociation of a partnership partner
The License of a partnership constructor shall be ipso facto terminated and cancelled by the
Board upon the death or disassociation of a partner. In case of project(s) on-going at the time
of the death or disassociation, the Board may give written authority for the surviving or
remaining partner(s) to continue prosecuting such project(s) till completion thereof; provided:
a) That a written application for such authority is filed with the Secretariat by the surviving or
remaining partner(s), within thirty (30) days from the death or disassociation:
b) That the Board is reasonably assured of the capability of the surviving or remaining
partner(s) to undertake the completion of the on-going project(s); and
c) That there is no legal impediment to their assumption of such undertaking.
Sec. 12.6 Death of a Sole Proprietor
The License of a sole proprietorship constructor shall be ipso facto terminated and cancelled
by the Board upon the death of the proprietor. In case of project(s) on-going at the time of the
death, the Board may give written authority to an heir to continue prosecuting such project(s)
to completion, conditioned upon the following:
a) That a written application foe such authority is filed with the Secretariat by an heir, within
thirty (30) days from the death;
b) That the Board is reasonably assured of the heir's capability and competence to
undertake the completion of the on-going project(s); and

c) That there is no legal impediment to the heir's assumption of such undertaking.

Sec. 12.7 Introduction of Foreign Equity
4
An introduction of thirty percent (30%) or more of foreign equity into a construction firm
holding a Regular License shall ipso facto invalidate the license. The constructor may apply
for a Special License subject to stipulations in Sec. 3.1(b) hereof.
RULES 13 LICENSE SUSPENSION LIFTING AND RESTORATION

Sec. 13.1 License Suspension Lifting
A License suspended for a fixed period, imposed to serve as a disciplinary action by itself,
shall be lifted by the Board upon expiry of the period when the licensee-constructor shall have
served his term of suspension.
A License suspended for an indefinite period pending the licensee-constructor's compliance
with the requirements and conditions set forth by the Board, may be lifted by the Board upon
proof of such compliance, provided same is effected within twelve (12) months from date of
start
3
Adjusted to 40% under Act 48 of Chapter III, Book II of the Omnibus Investment Code of
1987 of suspension. A License left suspended for more than twelve (12) months due to the
licensee-constructor's non-compliance with the Board-set requirements and conditions, shall
be deemed lapsed and cancelled by the Board, as also stipulated in Sec. 6.9 hereof.
Sec. 13.2 License Restoration
A constructor whose License was cancelled due to lapsing, as defined in Sec. 6.9 hereof, or
invalidated or revoked or denied renewal due to his loss of any of the required licensing
qualifications, as stipulated in Sec. 4.1 hereof, shall be allowed to apply for restoration of
License, it:
a) He is seeking License restoration for the first time;
b) The application therefor is filed within twelve (12) months after License invalidation or
revocation or renewal denial, whichever is the case; and
c) There is no pending Board action against him nor any impediment to his License
restoration.
If otherwise, he shall be allowed to apply only for re-licensing.
In case of restoration and if approved therefor, he shall be allowed retention of his original
License number and credit for experience of his firm as a licensed constructor prior to License
cancellation, invalidation, revocation or renewal denial. In case of re-licensing and if
4
Adjusted to 40% under Act 48 of Chapter III, Book II of the Omnibus Investment Code of 1987 of
suspension. A License left suspended for more than twelve (12) months due to the licensee-constructor's
non-compliance with the Board-set requirements and conditions, shall be deemed lapsed and cancelled by
the Board, as also stipulated in Sec. 6.9 hereof.

approved therefor, he shall be deemed a new constructor, to be assigned a new License

number and with no creditable experience as a firm.
Sec. 13.3 License Non-restoration
License restoration shall not be allowed in the following cases:
a) A constructor whose License was cancelled, revoked or denied renewal as a disciplinary
action;
b) A constructor found guilty, through disciplinary proceeding herein prescribed, of any act
or omission constituting a cause for disciplinary action, while under License suspension
or after License cancellation, revocation or renewal denial, regardless of whatever may
be the disciplinary action called for by such act or omission; and
c) A constructor, under an indefinite-period license suspension, who has been under
suspension for more than twelve (12) months.
However, the Board may, at its own discretion and notwithstanding stipulation to the contrary
in the foregoing, allow the restoration of a License, if justifiable by reasons deemed valid by
the Board. Likewise at its own discretion, the Board may Board may consider a License
cancelled, revoked or denied renewal more than two (2) times a disqualification of the
licensee-constructor for licensing.
A constructor hereby disallowed License restoration, except in the case of License
cancellation due to prolonged suspension which is separately provided for in Sec. 13.2
hereof, may apply for re-licensing upon proper showing that all losses caused by the act or
omission for which the License was cancelled, revoked or denied renewal have been fully
satisfied and that all conditions imposed by the decision of cancellation, revocation or renewal
denial have been complied with by him.
RULE 14 CODE OF ETHICS

Sec. 14.1 Code of Ethics
A licensed constructor shall observe the Code of Ethics, upheld by the construction
contracting industry since adoption in 1968 and as restated below, in the interest of instilling
professionalism in the industry towards enhancing its image and promoting its orderly
development.
FILIPINO CONTRUCTORS' CODE OF ETHICS

a) A constructor should be fair and honest in his business dealings his practices and
activities guided by principles of justice and equity.
b) A constructor should conduct himself with honor and dignity in his relations with his fellow
constructors, fully aware that to speak maliciously of the work reputation or ability of a
fellow constructor is highly unethical, and should cooperate with them for the protection
and advancement of the construction industry.
c) A constructor should carry his construction contracting on a high ethical level and deliver
quality service and faithful performance of the undertaking to which owner-clients are
entitled.

d) A constructor should not advertise his firm's business in misleading terms and false
representations which is not only improper but also immoral.
e) A constructor should refrain from unfair competition which is a disservice to the
construction industry.
f)
A constructor should be fair and just to his employees, considering their welfare with
sympathy and understanding.
g) A constructor should not attempt to supplant a fellow constructor who is in the employ of
the owner or to prevent a constructor from undertaking that which the owner has engaged
him to do, as it is a practice inconsistent with the honor and dignity of the construction
industry.
h)
A constructor should hold himself dedicated to the proposition that the construction
industry should be rid of participants whose reputation, conduct and practices are inimical
tot he construction industry.
RULE 15 ENFORCEMENT OF THE LAW

Sec. 15.1 Application of the Law and Exemptions therefrom
R.A. 4566, P.D. 1746 and the provisions hereof shall apply to all construction contracting
activities and undertakings by all builders, general engineering constructors, general building
constructors and specialty constructors, all as defined in Sec. 9(b-c-d-e) of R.A. 4566, except
the following which, as provided in Sec. 10, Sec. 11, Sec. 12, Sec. 13, Sec. 14, and Sec. 15
of R.A. 4566, shall be exempt from the application thereof:
a) Public Personnel
An authorized representative of the Republic of the Philippines or any incorporated town,
city, province, or other municipal or political corporation or subdivision of the Republic of
the Philippines, acting in his capacity as such;
b) Architects and Engineers
A registered civil engineer or a licensed architect acting solely in his professional
functions as defined in R.A. 544, otherwise known as the Civil Engineering Law, or in
R.A. 545, otherwise known as the Architecture Law;
c) Minor Work
Any work or operation on one undertaking or project by one or more contracts, with an
aggregate contract price of less than ten thousand pesos (P10,000.00) for the labor
materials and all other items; provided:
ca) That this exemption shall not apply in any case wherein the work or construction is
only part of a larger or major operation, whether undertaken by the same or a
different constructor or in which a division of the operation is made in contracts of
amounts less than ten thousand pesos(P10,000.00) for the purpose of evading or
otherwise violating the provisions of the Law;

cb) That this exemption shall, likewise, not apply in a case where the minor work is
being exempt from application of the Law; and
cc) That the Board shall be empowered to raise or lower the value ceiling of ten
thousand pesos (P10,000.00) for minor work whenever deemed necessary by the
Board to render same more relevant to prevailing conditions.
d) Small Scale Constructors
Corollary to exemption of minor work, a person or firm whose annual aggregate value of
accomplished construction contract work does not exceed twenty-five thousand pesos
(P25,000.00); which ceiling, however, may be raised or lowered by the Board whenever
deemed necessary to render same more relevant to prevailing conditions;
d) Material Men
Any person who only furnishes materials or supplies without fabricating them into, or
consuming them in the performance of, the work of the constructor;
e) Finished Products
Any scale or installation of any finished product, material or article or merchandise, which
is not actually fabricated into and does not become a permanent and fixed part of the
structure; and
f)
Personal Property
Any construction, alteration, improvement or repair of personal property as defined in
Article 416 of the Civil Code, or any construction of any project or alteration, improvement
or repair of any structure, undertaken by the owner thereof without the service of a
licensed constructor, which is not intended for sale, lease, commercial/industrial use or
any other income generating purpose.
Sec. 15.2 Enforcement by the Board

Should any person or firm not licensed by the board, or any constructor whose License is
under suspension or has expired or been revoked, engage or attempt to engage in the
business of construction contracting, the Board shall have the right to institute the proper
action in court and secure a writ of injunction without bond, restraining the said person, firm or
constructor.
Sec. 15.3 Enforcement by Officers of the Law
It shall be the duty of all duly constituted law enforcement officers of the national, provincial,
city and municipal government or any political subdivision thereof, to enforce the provisions of
the Law and to report to the Board may violation of the same.
Sec. 15.4 Enforcement in Construction Biddings
All architects and engineers preparing plans and specifications and all public or private
agencies or entities conducting biddings and/or letting out contracts for construction work to
be contracted and undertaken in the Philippines, shall include in their invitation to bidders and
other bidding documents necessary stipulations to convey to every bidder, whether he is a
resident of the Philippines or not, the information that it will be necessary for him to have a
License before his bid is considered.

Sec. 15.5 Penalties

Any person or firm shall be deemed guilty of misdemeanor:
a) If said person or firm, without first securing a License to engage in the business of
construction contracting in the Philippines,
aa) For a price commission, fee or wage,
i.
Submits or attempts to submit a bid to construct, or
ii.
Contracts to our undertakes to construct, or
iii. Assumes charge in a supervisory capacity of a construction work, or

b) If the person or firm shall:
ba)
Present or file the License certificate of another, or
bb)
Give false evidence of any kind tot he Board or any member thereof, on obtaining a
certificate or License, or
bc)
Impersonate another, or
bd)
Use an expired or revoked certificate or License.
Said person or firm shall, upon conviction, be sentenced to pay a fine, scheduled in
Appendix IV, subject to the disciplinary action stipulations of Sec. 10.1 hereof.
Sec. 15.6 Effectivity
These rules and regulations shall take effect upon approval by the President of the
Philippines.
OFFICE OF THE PRESIDENT

Of the Philippines
Malacaang
Ist Indorsement
Manila, March 31, 1981
Respectfully returned to the Honorable, the Secretary of Trade and Industry, Makati, Metro Manila,
hereby approving the revised Rules and Regulations to implement the provisions of RA 4566,
otherwise known as the Contractors' License Law, adopted by the Philippine Contractors
Accreditation Board as affirmed by the Construction Industry Authority of the Philippines.
By authority of the President:
(SGD.) CATALINO MACARAIG, JR.
Executive Secretary

APPENDICES
APPENDIX I

CLASSIFICATION
C
A
T
E
G
O
R
Y
MINIMUM QUALIFICATION REQUIREMENTS

(1)
(2)
FINANCIAL CAPACITY
STE MIN. CONST.
EXP. REQUIREMENT
I. GENERAL ENGINEERING
AAA
P90,000,000.00
GE-1 Road, Highways, Pavement

Railways, Airport horizontal
Structure, and Bridges
GE-2 Irrigation or Flood Control
GE-3 Dam, Reservoir or Tunneling
GE-4 Water Supply
GE-5 Port, Harbor or Offshore
Engineering
AA
45,000,000.00
450.00
10
50
250
915.15
9,000,000.00
90.00
21
105
265.00
4.500,000.00
45.00
10
50
122.50
3,000,000.00
30.00
15
75.50
900,000.00
9.00
15
24.00
AAA
P90,000,000.00
900.00
10
60
300
1,910.00
GB-1 Building or Industrial Plant
AA
45,000,000.00
450.00
10
50
250
895.00
GB-2 Sewerage or Sewage System
9,000,000.00
90.00
21
105
261.00
GB-3 Water Treatment Plant & System
4,500,000.00
45.00
10
50
120.50
GB-4 Park, Playground or

Recreational Work
3,000,000.00
30.00
15
66.50
900,000.00
9.00
15
24.00
AAA
P90,000,000.00
900.00
10
60
300
1,510.00
AA
45,000,000.00
450.00
10
50
250
695.00
9,000,000.00
90.00
21
105
211.00
4,500,000.00
45.00
10
50
110.50
3,000,000.00
30.00
15
60.50
900,000.00
9.00
15
24.00
45,000.00
0.40
none
none
none
0.45
III.
INDIVIDUAL
AGGREGATE
10
60
MIN.
C.P.
REQ'D.
300
OVERALL
CREDIT
POINTS
REQUIRED
CREDIT POINTS
(C.P.)
REQ'D.
900.00
II. GENERAL BUILDING
STOCKHOLDER'S
EQUITY
(3)
1,950.00
SPECIALTY
SP-FP Foundation Work

FP1- Piling Work
FP2- Soil Stabilization/ Slope Protection/ Reinforce Earth
SP-SS Structural Steel Work
SP-CC Concrete Pre-casting, Pre-Stress or Posttensioning
SP-PS Plumbing & Sanitary Work
SP-EE Electrical Work
SP-ME Mechanical Work
SP-AC Airconditioning or Refrigeration
SP-ES Elevator or Escalator
SP-FP Fire Protection Work
SP-WP Waterproofing Work
SP-PN Painting Work
SP-WD Well-Drilling Work
SP-CF Communication Facilities
SP-MS Metal Roofing & Siding Installation
SP-SD Structural Demolition
SP-LS Landscaping
SP-EM Electro Mechanical Work
Sp- NF Navigational Facilities
IV. SP-TRADE
TRADE
* Minimum Qualification Requirements for Principal Classification

** For Other Classification/s, Minimum of 3 Years Actual Construction Experience
*** Overall credit points inclusive of Equipment Capacity (1 point/P100Th); Experience of Firm (10 points/year of active existence; &
1 point/P100Th of 3 year Average Annual Volume of Work Accomplished; and COMTCP points if STEs are COMTCP certified




Appendix III - FEES
1.
LICENSING FEES
1.1
License Application Screening Fee
500.00
1.2
License Fee
1.3
License Re-Issue Fee
50.00
1.4
License Renewal Fee
50.00
50.00
1.5 Late License Renewal Additional Fee

1.6
20.00
Classification Fee
NOTES:
Classification Fee is vary with category, graduated in proportion with the minimum networth/paidup capital required of each category. Where classification occasions a re-categorization, the fee
shall be based on the ensuing category approved by the Board.
The fee shall be on "per classification" basis; provided that if more than one classification are
processed at the same time, each additional classification shall be at a reduced fee equal to fifty
percent (50%) of the fee for the first classification.
A sub-classification shall be similarly assessed as a main classification.
a)
a)
1.7
The first or only classification

Processed in any one instance
Each additional classification

Processed simultaneously with
one other classification
Category
AAA
AA
A
B
C
D
TRADE
P 2,000.00
1,000.00
200.00
100.00
60.00
20.00
Category
AAA
AA
A
B
C
D
TRADE
P 1,000.00
500.00
100.00
50.00
30.00
10.00
Exempt
Category Evaluation Fee

NOTES:
Category Evaluation Fee is to vary with the ensuing category as evaluated and approved by
the Board, graduated in proportion with the minimum networth/paid-up capital required of

each category
Category
AAA
AA
A
B
C
D
TRADE
P 15,000.00
7,500.00
1,500.00
750.00
450.00
150.00
Exempt
1.8 Category Review Fee

NOTES
Category Review Fee is to vary with the ensuing category as reviewed and approved by the
Board, in proportion with the minimum networth/paid-up capital required of each category.
Category
AAA
P 10,000.00
AA
5,000.00
A
1,000.00
B
500.00
C
300.00
D
100.00
TRADE
Exempt
2.
ACCREDITATION FEES
2.1
2.2
Accreditation Eligibility Screening Fees

500.00
Accreditation Fee
NOTES
Accreditation Fee is to vary with the applicant's category, graduated in proportion with the
minimum networth/paid-up capital required of each category; but subject to a floor fee of P
2,000.00 and to a proviso that if the applicant is capable, as determined by the Board, of
sustaining a higher category than his current category, the fee shall be based on the higher
category.
The fee shall be on "per sub-classification" basis; provided that if more than one subclassification are to be evaluated for accreditation at the same time, each additional subclassification accredited shall be at a reduced fee equal to ten percent (10%) of the fee for
the first sub-classification.
a)
The first or only sub-classification
Processed in any one instance
Category
AAA
P 40,000.00
AA
20,000.00
A
4,000.00
B
2,000.00
C
2,000.00
b)
Each additional sub-classification

Processed simultaneously with
one other classification
Category
AAA
AA
A
B
C
P 4,000.00
2,000.00
400.00
200.00
200.00

2.3
2.4
Accreditation Certificate Re-Issue Fee

Index rating Upgrading Fee
500.00
NOTES
Index Rating Upgrading Fee shall be subject to the same stipulations for Accreditation Fee,
as annotated above under Item 2.2. Where accreditation is referred to therein, it shall be
taken as referring to Index Rating Upgrading.
a)
The first or only sub-classification
upgraded in Index Rating in any one
instance:
Category
AAA
P 8,000.00
AA
4,000.00
A
2,000.00
B
2,000.00
C
2,000.00
b)
Each
additional
sub-classification
upgraded
in
Index
Rating
simultaneously
with
one
other
classification
Category
AAA
AA
A
B
C
800.00
400.00
200.00
200.00
200.00

Appendix IV - FINES
1.
IMPOSITION OF FINES
A fine may be imposed on any of the causes for disciplinary action or any of the offenses of
misdemeanor. Herein under are schedules of fines on some such causes and offenses normally
subject to imposition of a fine. These schedules are not intended and shall, therefore, not be
invoked to preclude any other disciplinary action which the Board may take in addition to a fine or
in lieu thereof. However, by provisions of R.A. 4566 and notwithstanding these schedules, the
amount of any fine shall be subject to a floor of Five Hundred Pesos (P 500.00) and a ceiling of
Five Thousand Pesos (P 5,000.00).
2.
CONSTRUCTION CONTRACTING ACTIVITIES IN A CLASSIFICATION NOT AUTHORIZED

BY LICENSE OR WITH THE USE OF AN EXPIRED LICENSE NOT SUBJECT OT
CANCELLATION OR REVOCATION.
a)
For prequalifying as a bidder:

Fine= 0.003% of project budget
b)
For participating in bidding:

Fine=0.005% of bid price
c) For entering into construction contract:

Fine=0.010% of contract sum
c)
3.
For undertaking construction:

Fine=0.050% of contract value implemented
CONSTRUCTION CONTRACTING ACTIVITIES AFTER

CANCELLATION OR REVOCATION, OR SANS A LICENSE
LICENSE
a)
For prequalifying as a bidder:

Fine=0.010% of project budget
b)
For participating in bidding:

Fine=0.020% of bid price
c)
For entering into construction contract:

Fine=0.040% of contract sum
d)
For undertaking construction:

Fine=0.200% of contract value implemented
SUSPENSION,

Appendix V
REPUBLIC ACT NO. 4566
AN ACT CREATING THE PHILIPPINE LICENSING BOARD FOR CONTRACTORS, PRESCRIBING ITS
POWERS, DUTIES AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representative of the Philippines in Congress assembled:
SECTION 1. Title of Act.-This act shall be known as the "Contractors License Law."
ARTICLE I.- Administration
SEC. 2. Composition of the Board.- To carry out the purpose of this Act, there is hereby created a
"Philippine Licensing Board for Contractors", under the office of the Board of Examiners, hereinafter referred
to as the Board, consisting of a Chairman and two other members who shall be appointed by the President of
the Philippines, with the consent of the Commission on Appointments.
SEC. 3. Qualifications of members.-Each member of the Board shall be recognized standing in his
branch of the contracting business for ten years, or more, a citizen and resident of the Philippines for at least
eight years immediately prior to his appointment, at least thirty-five years of age and possessed of a good
moral character.
SEC. 4. Term of office.- The Chairman and members of the Board shall hold office for a term of
three years. The members of the Board first appointed shall hold office for the following terms: Chairman for
three years; one member for two years; and the other member for one year.
Any member of the Board may be removed by the President of the Philippines for neglect or dereliction of
duty, incompetence, malpractice, and unprofessional, unethical, immoral or dishonorable conduct: Provided,
That in the course of investigation, the President of the Philippines shall have the power to suspend such
member under investigation and designate a temporary member in his place.
Vacancies in the Board shall be filled for the period of the unexpired term only.
SEC. 5. Powers and duties of the Board.-The Board is vested with authority to issue, suspend and
revoked licenses of contractors, to investigate such violations of this Act and the regulations thereunder as
may come to its knowledge and, for this purpose issue subpoena and subpoena duces tecum to secure
appearance of witnesses in connection with the charges presented to the Board, and to discharge such other
powers and duties affecting the construction industry in the Philippines.
The Board may, with the approval of the President of the Philippines, issue such rules and regulations
as may be deemed necessary to carry out the provisions of this Act, to adopt a code of ethics for contractors
and to have an official seal to authenticate its official documents.
SEC. 6. Board Meetings.- The Board shall meet as frequently as is necessary to perform its duties,
but it shall meet at least once a month. It may be convoked by the Chairman or upon written request of the
two other members.
SEC. 7. Compensation.-For every meeting attended, the Chairman of the Board shall receive a per
diem of twenty-five pesos each: Provided, That in no case will the total amount received by each of them
exceed the sum of four hundred pesos for any one month.

SEC. 8. Annual Report. The Board shall, at the end of each fiscal year, submit to the President of the
Philippines and the Congress a detailed report of its activities and proceedings during the period covered by
the fiscal year ended.
ARTICLE II.- Application of the Act

SEC. 9. Definition of Terms- As used in this Act:
(a) "Persons" include an individual, firm, partnership, corporations, association or other organization,
or any combination of any thereof.
(b) "Contractor" is deemed synonymous with the term "builder" and hence any person who
undertakes or offers to undertake or purpose to have the capacity to undertake or submits a bid
to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve,
move, wreck or demolish any building, highway, road, railroad, excavation or other structure,
projects, development or improvement, or to do any part thereof, including the erection of
scaffolding or other structures or works in connection therewith. The term contractor includes
subcontractor and specialty contractor.
(c) A "general engineering contractor" is a person principal contracting business is in connection with
fixed works requiring specialized engineering knowledge and skill, including the following divisions
or subjects: irrigation, drainage, water power, water supply, flood control, inland waterways,
harbors, docks and wharves, shipyards and ports, dams, hydroelectric projects, levees, river
control and reclamation works, railroads, highways, streets and roads, tunnels, airports and
airways, waste, reduction plants, bridges, overpasses, underpasses and other similar works,
pipelines and other system for the transmission of petroleum and other liquid or gaseous
substances, land leveling and earth moving projects, excavating, grading, trenching, paving and
surfacing work.
(d) A "general building contractor" is a person whose principal contracting business is in connection
with any structure built, being built, or to be built, for the support shelter and enclosure of persons,
animals chattels or movable property of any kind, requiring in its construction the use of more
than two unrelated building trades or crafts or to do or superintend the whole or any part thereof.
Such structure includes sewers and sewerage disposal plants and systems, parks, playgrounds
and other recreational works, refineries, chemical plants and similar industrial plants requiring
specialized engineering knowledge and skill, powerhouses, power plants and other utility plants
and installations, mines and metallurgical plants cements and concrete works in connection with
the above-mentioned fixed works.
A person who merely furnishes materials or supplies under section eleven without fabricating
them into, or consuming them in the performance of the work of the general building contractor
does not necessarily fall within this definition.
(e) A "specialty contractor" is a person whose operations pertain to the performance of construction
work requiring special skill and whose principal contracting business involves the use of
specialized building trades or crafts.
SEC. 10. Public Personnel.- This Act shall not apply to an authorized representative of the Republic
of the Philippines or any incorporated town, city, province, or other municipal or political corporation or
subdivision of the Republic of the Philippines.
SEC. 11. Finished Products.- This Act shall not apply to any sale or installation of any finished
products, materials or articles or merchandise, which are not actually fabricated into and do not become a
permanent and fixed part of the structure.

SEC. 12. Personal Property.- This Act shall not apply to any construction, alteration, improvement or
repair of personal property.
SEC. 13. Minor Work.- This Act shall not apply to any work or operation on one undertaking or
project by one or more contracts, with an aggregate contract price of less than ten thousand pesos for the
labor, materials and all other items.
This exemption, however, shall not apply in any case wherein the work or construction is only part of a
larger or major operation, whether undertaken by the same or a different contractor, or in which a division of
the operation is made in contracts of amounts less than ten thousand pesos for the purpose of evading or
otherwise violating the provisions of this Act.
SEC. 14. Architects and Engineers.- This Act shall not apply to a registered civil engineer or a
licensed architect acting solely in his professional capacity.
SEC. 15. Material Men.-This act shall not apply to any person who only furnishes materials or
supplies without fabricating them into, or consuming them in the performance of, the work of the contractor.
ARTICLE III.-Classifications
SEC. 16. Classification.- For the purpose of classification, the contracting business includes any or all
of the following branches.
(a)
(b)
(c)
General engineering contracting;

General building contracting; and
Specialty contracting
SEC. 17. Power to classify and limit operations.-The Board may adopt reasonably necessary rules
and regulations to effect the classification of contractors in a Manner consistent with established usage and
procedure as found in the construction business, and may limit the field and scope of the operations of a
licensed contractor to those in which he is classified to engage, as respectively defined in section nine. A
licensee may make application for classification and be thus classified in more than one classification if the
licensee meets the qualification prescribed by the Board such additional classification or classifications. No
additional application or license fee shall be charged for qualifying or classifying a licensee in additional
classifications.
SEC. 18. Incidental work.-Nothing in this Act shall prohibit a specialty contractor from taking and
executing a contract involving the use of two or more crafts or trades, if the performance of the work in such
crafts or trades, other than in which he is licensed, is only incidental or supplemental to the performance of
work in the said craft or trade for which he is licensed.
ARTICLE IV.-Licensing
SEC. 19. Examinations required.-In accordance with the rules and regulations promulgated by it, the
Board may investigate, classify and qualify applicants for contractors' licenses by written or oral examination,
or both.
SEC. 20. Qualifications of applicants for contractors' licenses.-The board shall require an applicant to
show at least two years of experience in the construction industry, and knowledge of the building, safety,
health and lien laws of the Republic of the Philippines and the rudimentary administrative principles of the
contracting business as the Board deems necessary for the safety of the contracting business of the public.
For purposes of this section, a partnership, corporation, or any other organization may qualify through
its responsible managing officer appearing personally before the Board who shall prove that he is a bona fide
responsible officer of such firm that he exercises or is in position to exercise authority over the contracting

business of his principal or employer in the following manner: (1) to make technical and administrative
decisions; and (2) to hire, superintend, promote, transfer, lay off, discipline or discharge employees.
SEC. 21. Notice of disassociation required.-If the individual who has qualified under the preceding
section ceases for any reason whatsoever to be connected with license under this Act, or if any individual who
has been denied a license, or whose license had been revoked or suspended, or has failed to secure the
restoration of his license if it has been suspended, or has been a responsible managing officer or employee of
any partnership, corporation, firm or association whose application for a license has been denied, revoked, or
suspended, or who has failed to secure the restoration of its license if it has been suspended, shall in any way
become associated with or be employed by a licensee, the licensee shall notify the Board in writing ten days
from such cessation, association or employment. Such notice may entitle the license concerned to remain in
force within a reasonable period as determined by the rules prescribed by the Board.
SEC. 22. Failure to notify in case of disassociation.- If the licensee fails to notify the Board within the
ten-day period in accordance with the preceding section, his license shall be ipso facto suspended. Such
license may be restored, however, upon the filing of an affidavit, executed by the licensee or the duly
authorized responsible managing officer of the licentiate firm, with the Board, to the effect that the person
originally appearing for examination on behalf of the licensee has been replaced by another individual, that
this individual has been qualified by examination, that he can comply with the provision of this section and that
he has not had his license suspended or revoked or that he has not been connected with a licensee whose
license has been suspended or revoked due to the lack of a good character required of an applicant for a
license.
SEC. 23. Issuance of licenses.-Upon the payment of the corresponding fee and the filing of the
application, and after examination and investigation as may be required, the board within fifteen days after the
approval of the application shall issue a license to the applicant permitting him to engage in business as a
contractor under the terms of this Act for the remaining part of the fiscal year.
SEC. 24. Death.-A surviving member or members of a licensed partnership by reason of death shall
be entitled to continue in business under such license until the expiration date thereof, if an application for
permission is made to the registrar within forty days after the death of the deceased member and approved by
the Board.
SEC. 25. No examination required.-Contractors actively engaged in the construction industry at the
effectivity of this Act and licensed as such for the last five years, may upon application, be issued license
without necessity of examination.
ARTICLE V.-Records
SEC. 26. Publication of list.-The Board shall publish, at least once a year in a newspaper of general
circulation, a list of the names and addresses of contractors, registered under this Act and of the licenses
issued, suspended or revoked, and such further information with respect to this Act and its administration that
it deems proper.
Copies of such lists may also be furnished by the Board upon request to any firm or individual upon
payment of a reasonable fee as fixed by the Board.
SEC. 27. Changes.-All licensees shall report to the Board all changes of personnel, name, style or
addressee recorded under this Act within thirty days after the changes are made.
ARTICLE VI.-Disciplinary Action

SEC. 28. Causes for disciplinary action.-The following shall constitute causes for disciplinary action:

(a) Willful and deliberate abandonment without lawful and/or just excuse of any construction
project or operation engaged in or undertaken by the licensee as a contractor;
(b) Willful material and substantial departure from or disregard of plans and/or specifications
in any material respect, and prejudicial to another without consent of the owner or the
person entitled to have the particular construction project or operation completed in
accordance with such plans and/ or specifications of their duly authorized
representations;
(c) Willful misrepresentation of a material and substantial fact by an applicant in obtaining a
license;
(d) Aiding or abetting an unlicensed person to evade the provisions of this Act, or knowingly
combining or conspiring with an unlicensed person, or allowing one's license to b used by
an unlicensed person, or acting as agent or partner, or associate, or otherwise of an
unlicensed person with the intent to evade the provisions of this Act.
(e) Failure to comply with the provisions of this Act;
(f) The doing of any willful of fraudulent act by the licensee as a consequence of which
another is injured or damaged; and
(g) The participation by a licensee in the performance by any partnership, corporation, firm or
association of which he is a responsible managing partner, employee or officer, of any act
or omission constituting a cause for disciplinary action under this Act.
ARTICLE VII.- Disciplinary Proceedings

SEC. 29. Jurisdiction- The Board shall, upon its motion or upon the verified complaint in writing of any
person, investigate the action of any person, investigate the action of any contractor and may suspend or
revoke any license if the holder thereof has been guilty of or has committed any one or more of the acts or
omissions constituting causes for disciplinary action.
SEC. 30. Prescription. - All accusations or changes against licensees shall be filed within one year
after the act or omission alleged as the ground therefor, except that with respect to an accusation alleging a
violation of subsection (c) of section twenty-eight the accusation may be filed within two years after the
discovery by the Board of the alleged facts constituting the fraud or misrepresentation.
SEC. 31. Restoration or renewal of licenses. - After suspension of the license upon any of the
grounds set forth in this Act, the Board may lift such suspension upon proof of compliance by the contractor
with the requirements and conditions set forth by the Board.
After revocation of a license upon any of the grounds set forth in this Act, it shall be renewed or
reissued within a period of one year after the final decision of revocation upon proper showing that all losses
caused by the act or omission for which the license was revoked have been fully satisfied and that all
conditions imposed by the decision of revocation have been complied with.
SEC. 32. Jurisdiction .- The lapsing or suspension of a license by operation of law, by order or
decision of the Board or other competent authority, or the voluntary surrender of a license shall not deprive
the Board of jurisdiction, or the voluntary surrender of a license shall not deprive the Board of jurisdiction to
proceed with any investigations or an action or disciplinary proceedings against such license, or to render a
decision suspending or revoking it.
ARTICLE VIII.- Enforcement and Penalties

Sec. 33. Enforcement by officers of the law.- It shall be the duty of all duly constituted law
enforcement officers of the national, provincial, city and municipal government or any political subdivisions
thereof, to enforce the provisions of this Act and to report to the Board any violation of the same.
Sec. 34. Enforcement by the Board.- Should any contractor not licensed by the Board engage or
attempt to engage in the business of contracting, the Board shall have the right to institute the proper action in
court and secure a writ of injunction without bond restraining the said contractor.
Sec. 35. Penalties - Any contractor who for a price, commission, fee or wage, submits or attempts to
submit a bid to construct, or contracts, to or undertakes to construct, or assumes charge in a supervisory
capacity of a construction work within the purview of this Act, without first securing a license to engage in the
business of contracting in this country; or who shall present or file the license certificate or another, give false
evidence of any kind to the Board, or any member thereof in obtaining a certificate or license, impersonate
another, or use an expired or revoked certificate or license, shall be deemed guilty or misdemeanor, and shall,
upon conviction, be sentenced to pay a fine of not less than five hundred pesos but not more than five
thousand pesos.
ARTICLE IX.- Miscellaneous Provisions
SEC.36. License required in biddings- All architects and engineers preparing plans and specifications
for work to be contracted in the Philippines shall include in their invitation to bidders and in their specifications
a copy of this Act, or such portions thereof as are deemed necessary to convey to the invited bidder, whether
he is a resident of the Philippines or not, the information that it will be necessary for him to have a license
before his bid is considered.
SEC. 37. Individual License.- It is unlawful for any person who is a responsible managing partner,
officer or employees of a licensed partnership, corporation, firm, association or other organization to
individually engage in the constructing business or individually act in the capacity of a contractor within this
jurisdiction without having a license in good standing to so engage or act.
SEC. 38. Joint Licenses.- It is unlawful for any two or more licensees, each of whom has been
issued a license to engage separately in the capacity of a contractor, to jointly submit a bid or otherwise act in
the capacity of a contractor without first having secured an additional license for acting in the capacity of such
a joint venture or combination in accordance with the provisions of this Act as provided for an individual,
partnership or corporation.
ARTICLE X.- Fees

SEC. 39. Fee.- The amount of fees prescribed by this Act shall be as follows:
(a) Fifty pesos for an original license;
(b) Sixty pesos for examination of an applicant;
(c) Fifty pesos for an annual renewal.
ARTICLE XII.- Renewal of Licenses
SEC. 42. Separability Clause.- If any provision of this Act is held unconstitutional, the other
provisions shall not be affected thereby.
SEC. 43. Repeal.- All Acts or parts of Acts inconsistent with this Act are hereby repealed.
SEC. 44. Effectivity.- This Act shall take effect upon its approval.
Approved, June 19, 1995.

Appendix VI
PRESIDENTIAL DECREE NO. 1746
(As amended by Executive Order Nos. 679 & 768)
CREATING THE CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES
WHEREAS, the construction industry constitute an important segment of the industrial sector and
contributes significantly to the gross national product of the Philippines;
WHEREAS, construction is now a major industry, accounting for more than five hundred thousand
workers and providing livelihood to more than three million Filipinos;
WHEREAS, the construction industry has began to venture into international markets, generating
foreign exchange and providing greater employment to Filipino workers;
WHEREAS, the orderly growth and development of the construction industry and the upgrading of
the capability of construction contractors are inconsonance with national interest and will benefit both public
and private sector;
WHEREAS, the continued growth and development of the construction industry requires an
increasing number of skilled construction workers; and
WHEREAS, such growth and development have been hampered by the lack of cohesive
government policies and the absence of a central agency to deal with the problems of the industry and to
coordinate with other government agencies on matters affecting the industry.
NOW, THEREOFRE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby order and decree the creation of the Construction Industry
Authority of the Philippines (CIAP) designed to promote, accelerate and regulate the growth and development
of the construction industry as follows:
SECTION 1. Composition. There is hereby established a Construction Industry Authority of the
Philippines (CIAP) which shall be composed of the Minister of Trade and Industry as Chairman, the Minister of
Public Works and Highways, the Minister of Transportation and Communication, the Minister of Labor and
employment, the Chairmen of the different agencies under the CIAP namely: The Philippine Contractors
Accreditation Board (PCAB), the Philippine Overseas Construction Board (POCB), the Philippine Domestic
Construction Board (PDCB), the Construction Manpower Development Foundation (CMDF), the President of
the Philippine Constructors Associated Incorporated (PCA), and one representative of the private construction
sector to be appointed by the president, as members. The Chairman may designate a special construction
industry representative in the Middle East who will become an ex-officio member of the Board. The Chairman
shall, also, designate a Vice-Chairman from among the members.
SECTION 2. Powers and Objectives. The Construction Industry Authority of the Philippines shall
promote, accelerate and regulate the growth and development of the construction industry in conformity with
national goals.
Specifically, the Authority shall have the following powers and objectives:
(a) To evolve overall strategy and exercise centralized authority for the optimum
development of the construction industry;
(b) To monitor and study the operations of the construction industry both here and
abroad, to identify its needs, problems and opportunities and to recommend and/or

implement policies, legislations, programs and measures to support the development

of the industry;
(c) To rationalize investments in the construction industry in accordance with national
investment priorities and development needs;
(d) To establish criteria for the classification and categorization of contractors which
accurately reflect their contracting capacity and performance capability;
(e) To enforce relevant and reasonable rules and requirements, as well as implement
practicable and efficient procedures for prequalification of public projects;
(f) To recommend and encourage the adoption of equivalent and realistic contract
conditions for constructions:
(g) To seek adoption of credit and other financing policies necessary for sustaining the
continued and orderly development of the construction industry and for supporting
Filipino contractors particularly those involved in overseas constructions;
(h) To identify and recommend other incentives necessary to support overseas
construction;
(i)
To establish procedures; guidelines and criteria for fair and expeditious adjudication
and settlement of claims and disputes in contract implementation;
(j)
To promote construction manpower training to supplement the manpower training

efforts of the private sector, through the centralization of programming and
coordination of activities of all government agencies;
(k)
To establish a funding mechanism with the private sector to promote and develop
the construction industry;
(l)
To perform such other functions necessary to achieve its objectives.
SECTION 3. Organization. The Authority shall be attached to the Ministry of Trade and Industry
for the policy and program coordination. It shall exercise authority with respect to the government agencies
that conduct business with or exercise regulatory powers over the construction industry. It shall exercise
jurisdiction and supervision over the following agencies which shall act as its implementing arms:
a
b.
c.
d.
The Philippine Contractors Accreditation Board

The Philippine Overseas Construction Board
The Philippine Domestic Construction Board
The Construction manpower Development Foundation
SECTION 4. The Philippine Contractors Accreditation Board (PCAB). There is hereby created a
Philippine Contractors Accreditation Board (PCAB) under the jurisdiction and supervision of the Authority.
The Philippine Contractors Licensing Board is hereby abolished and all its funds and records are hereby
transferred to the PCAB.
a. Composition. The board shall be composed of a Chairman and two (2) members to
be appointed by the President, upon recommendation of the Authority. The present
Board of the Philippine Contractors Licensing Board shall continue to hold office as
the Board the PCAB until their respective successors have been duly appointed.
b. Functions. The PCAB shall perform the present functions of the Philippine
Contractors Licensing Board until such time as its other functions, powers and duties
are issued by the Authority.

SECTION 5. The Philippine Overseas Construction Board (POCB). The Philippine Overseas
Construction Board (POCB) created under P.D. 1167, as amended, is hereby place under the jurisdiction and
supervision of the Authority. It shall continue to perform its present functions and shall perform additional
functions as may be assigned by the Authority.
SECTION 6. The Philippine Domestic Construction Board (PDCP). There is hereby created a
Philippine Domestic Construction Board (PDCP) under the jurisdiction and supervision of the Authority.
a. Composition. The Board shall be composed of a Chairman and four (4) members to
be appointed by the President upon recommendations of the Authority.
b. Functions. The PDCB shall formulate, recommend and implement policies,
guidelines, plans and programs for the efficient implementation of public and private
construction in the country. Specially, it shall:
1. Formulate and recommend appropriate policies and guidelines for
prequalification, bidding and contract award for the public infrastructure projects;
2. Monitor and evaluate information on the status of public construction projects as
well as on the performance and contracting capacity of contractors engaged in
such projects;
3. Adjudicate and settle claims and disputes in the implementation of public
construction contracts and for this purpose, formulate and adopt the necessary
rules and regulations subject to the approval of the President;
4. Formulate and recommend approximate and standardized contract
terms/conditions and guidelines for determining contract price adjustments in
private construction;
5. Formulate and recommend rules and procedures for the adjudication and
settlement of claims and disputes in the implementation of contracts in private
construction;
6. Perform such other functions as may be assigned by the Authority.
SECTION 7. The construction Manpower Development Foundation (CMDF). There is hereby
created a Construction Manpower Development Foundation (CMDF) which shall serve as the manpower
development arm of the Authority.
a. Composition. The Foundation shall have a Board of Directors to be composed of a
Chairman and four (4) members to be appointed by the Minister of Trade and
Industry upon recommendation of the Authority.
b. Functions. The Foundation shall perform and following functions:
1. Draw up overall construction manpower development plan and relevant
strategies;
2. Develop and implement manpower training programs for the construction
industry.
3. Formulate and adopt construction skills and standard and establish skills testing
and certification facilities in coordination with the National manpower and Youth
Council (NMYC);

4. Recommend appropriate policies and measures to rationalize training and export

of trained manpower in the construction industry in coordination with the Ministry
of Labor and Employment (MOLE) and other pertinent government agencies;
5. Develop a funding mechanism in cooperation with the construction industry to
enable it to carry out its functions by collecting fees and undertaking incomegenerating activities;
6. Borrow from financing institutions to support its operations;
7. Perform such other functions as may be assigned by the Authority.
The Foundation shall coordinate its activities and work program with the NMYC, the Bureau of
Employment Services of the MOLE, the POCB and the Ministry of Education and Culture (MEC).
SECTION 8. Executive Office. The Authority shall have an Executive Office healed by a full-time
Executive Director to be appointed by the Chairman.
The Executive Office shall maintain a technical, legal and management staff to assist the
Executive Director in the performance of these duties and responsibilities.
The Executive Director shall report directly to the Authority on matters pertaining to and/or
concerning the Authority and shall be responsible for monitoring and implementation of the policies and
programs of the Authority, particularly by the four (4) agencies of the Authority, to the purpose of ensuring
effectiveness and proper coordination.
The PCAB, the PDCB and CNDF shall establish their own Secretariat to service their respective
Boards and to assist the Authority in the execution of its functions and responsibilities, subject to pertinent
budgetary organization, compensation and civil service rules and regulations. Each of the three (3) agency
Secretariat shall be headed by their respective Executive Officers to be appointed by the Chairman of the
Authority upon recommendation of their respective Boards. The POCB shall continue to maintain its
Executive Staff. All relevant agencies of the government involved in the development and promotion of the
construction industry are hereby directed to coordinate with the Authority in the execution of its functions.
SECTION 9. Compensation. The authority shall fix (a) per diems of the Chairmen and the
members of the different Boards of the implementing agencies and (b) the salaries and allowances of the
Executive Director, the staff of the Executive Office as well as the office of the different Secretariats under the
Authority, subject to pertinent budget, compensation, organization and civil service rules and regulations.
SECTION 10. Meetings. The Authority and the boards of the implementing agencies shall meet
as often as is necessary but not less than once a quarter. Special meetings may be called by the respective
Chairmen. The presence of the majority of the members of the Authority or the Boards of the implementing
agencies shall constitute a quorum.
SECTION 11. Rules and Regulations. The Authority shall issue such rules and regulations as
may be necessary for the implementation of the general provisions of this Decree.
SECTION 12. Funding. The amount of five million pesos (P5,000,000) is hereby authorized to be
released from the Special Activities Fund to cover the operating and capital expenses of the CIAP and its
implementing agencies for CY 1981, subject to Section 40 of P.D. No. 117.
The Authority and its implementing agencies are hereby empowered to collect fees and undertake
income-generating activities as may be necessary in the execution of its functions and responsibilities. The
Authority and its implementing agencies are hereby authorized to use its income to finance its operations, the
provisions of law, to the contrary, notwithstanding.

SECTION 13. Separability Clause. The provision of this Decree 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 14. Repealing Clause. All provisions of existing laws, proclamations, decrees, letters in
instruction with this Decree are hereby repealed or modified accordingly.
SECTION 15. Effectivity Clause. This Decree shall take effect immediately.
th
Done in the city of Manila, this 29 day of November in the Year of Our Lord nineteen hundred and
eighty.
(SGD.) FERDINAND E. MARCOS
President of the Philippines
By the President:
(SGD.) JOAQUIN T. VENUS, JR.
Presidential Assistant

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Rules and Regulations

Governing Licensing and Accreditation of Constructors in the Philippines

Courtesy of PCA Metropolitan Chapter 2

RULES AND REGULATIONS

Courtesy of PCA Metropolitan Chapter 3

The Handbook on Rules and Regulations Governing Licensing and Accreditation

This is a project of the Philippine Domestic Construction Board (PDCB) in

implementing boards of the Construction Industry Authority of the Philippines (CIAP).

Courtesy of PCA Metropolitan Chapter 4

Powers and Duties of the Board

REQUIREMENTS FOR LICENSING

Qualifications for Licensing

LICENSE CLASSIFICATION AND CATEGORIZATION

POWERS AND DUTIES OF THE BOARD

LICENSE RENEWAL AND RE-EVALUATION

Annual License Renewal

Provisional License Renewal

Courtesy of PCA Metropolitan Chapter 5

LICENSING AND ACCREDITATION FEES

RIGHTS AND DUTIES OF LICENSED CONSTRUCTORS

Regular License Authorization

Change in an Accreditation Performance Factor

DISCIPLINARY ACTION, PROCESSING AND DECISION

LICENSE DENIAL AND CANCELLATION

Courtesy of PCA Metropolitan Chapter 6

LICENSE SUSPENSION LIFTING AND RESTORATION

Permissible Operation after License Non-Renewal

License Suspension Lifting

Application of the Law and Exemptions therefrom

ENFORCEMENT OF THE LAW

Courtesy of PCA Metropolitan Chapter 7

Sec. 1.1 Definition of Terms

g) "Joint Venture" means a cooperative arrangement of licensed constructors to jointly

"Category" indicates the graded level of aggregate capability of a constructor based on

"Principal Classification" is the main contracting classification of a multi-classification

m) "General Engineering" refers to the contracting classification that a licensed "General

Courtesy of PCA Metropolitan Chapter 8

o) "Specialty" refers to the contracting classification that a licensed "Specialty" contractor, as

s) "Accreditation" means the status conferred on a licensed constructor by the Authority,

POWERS AND DUTIES OF THE BOARD

Sec. 2.1 Powers and Duties of the Board

Courtesy of PCA Metropolitan Chapter 9

To collect fees and undertake income generating activities whenever necessary, to

k) To gather and collate information on constructors relevant to implementation of R.A.

To publish in a newspaper of general circulation, at least once a year, particulars of

RULE 3 CONTRACTOR'S LICENSE

Courtesy of PCA Metropolitan Chapter 10

A foreign firm legally allowed by the proper Philippine government authority to

Courtesy of PCA Metropolitan Chapter 11

If a Special License, identification of the single specific undertaking/project thereby

Courtesy of PCA Metropolitan Chapter 12

RULE 4 REQUIREMENTS FOR LICENSING

He must have a stockholders'/owner's equity or networth of at least the amount required

d) If a partnership or corporation, the applicant firm shall have, in its Articles of

increased to three (3) years on 23 August 1988 Board Meeting

Courtesy of PCA Metropolitan Chapter 13

b) Be a full-time employee of the nominating constructor, not associated professionally or

Courtesy of PCA Metropolitan Chapter 14

b) Have none of the disqualifications applicable to a Sustaining Technical Employee and

Duly accomplished application form as prescribed by the Board;

Supplementary schedules of the latest audited financial statements of the applicant

Courtesy of PCA Metropolitan Chapter 15

Authorization to depository bank to release information to PCAB;