REPUBLIC ACT 9285 --ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004

SALIENT POINTS
INTRODUCTION
The Philippines was one of the earliest countries, certainly in Asia, to have acceded to the
New York Convention, 1958. It acceded to the Treaty in 1967. Like many other countries
today, the Philippines, despite having acceded to the New York Convention, did not enact
specific laws that would facilitate arbitration, in particular, international commercial
arbitrations. Even Singapore did not previously have any specific arbitration laws that
facilitated international commercial arbitration and gave effect to the principles and
philosophy behind the Model Law under the New York Convention regime. Singapore
only enacted a law specifically for international commercial arbitration in 1995 with the
passing of the International Arbitration Act (Cap.143A). In February of this year, the
Philippines eventually introduced into their laws a new arbitration law which included an
entire section dealing specifically with international commercial arbitration.
REPUBLIC ACT 9285
On 4 February 2004, the Republic Act 9285 (the Act), which was a consolidation of
Senate Bill No. 2671 and House Bill No. 5654 was passed by the Senate and the House
of Representatives. President Gloria Macapagal Arroyo, approved the Act on 2 April
2004. The Act bears the full name of Alternative Dispute Resolution Act of 2004. As the
name suggests it covers the law relating to alternative dispute resolution which includes
international commercial arbitration. Indeed the preamble to the Act describes it as An
Act to institutionalize the use of an Alternative Dispute Resolution system in the
Philippines and to establish the Office for Alternative Dispute Resolution, and for other
purposes.
As a statement of policy, Section 2 of the Act contains a Declaration of Policy which
states inter-alia, it is hereby declared the policy of the State to actively promote party
autonomy in the resolution of disputes It goes on to declare that the State shall
encourage and actively promote the use of Alternative Dispute Resolution (ADR) as an
important means to achieve speedy and impartial justice.
The Act, as the preamble suggests, deals with the different forms of ADR namely
Mediation, commercial arbitration both domestic and international as well as
Construction arbitrations within the purview of Executive Order 1008 known as the
Construction Industry Arbitration Law (CIAC).
CHAPTER 4 OF THE REPUBLIC ACT 9285
This is the Chapter which specifically deals with the law relating to International
Commercial Arbitration. It is this section of the Act that would be of interest to
international parties. This is the Chapter that will for the first time in the Philippines give
effect to the philosophy and principles underpinning the UNCITRAL Model Law.

Significantly, Chapter 4 begins with the adoption of the Model Law. Thus Section 19 of
the Act states that International commercial arbitration shall be governed by the Model
Law on International Commercial Arbitration (the Model Law) adopted by the United
Nations Commission on International Trade Law on June 21, 1985.
Selected Provisions in Chapter 4 of the Act
Section 20 Much like section 4 of Singapores International Arbitration Act and
consonant with the approach of the United Nations in respect of legislative/treaty
documents, Section 20 makes clear that in interpreting the Model Law regard may be had
to the travaux preparatoire.
Section 21 This section defines an arbitration as commercial if it covers matters
arising from all relationships of a commercial nature, whether contractual or not. As a
definition it is doubtful if it goes any further than what would, in any event, be
understood by businessmen as commercial. Further, the phrase whether contractual
or not. seems unclear. Presumably, the intention is to cover relationships beyond
contractual and in that sense one could think of quasi-contractual or possibly
relationships imposed by the operation of law such as relationships which create duties in
tort. The scope of the definition must obviously await judicial interpretation. Perhaps it
would have been better for the legislators to have simply left the meaning of
commercial to the business community and avoid any definition. This is the case with
Singapores International Arbitration Act where there is no definition.
Section 23 This section establishes the confidential nature of arbitration proceedings
including the records, evidence and the arbitral award. It also sets out under what
circumstances this cloak of confidentiality may be lifted. Many jurisdictions including
Singapore does not legislate into their law this concept of confidentiality. This is perhaps
because in common law jurisdictions there are ample (though sometimes complicated)
characterizations of arbitrations as being confidential in case law. The section is, it is
submitted, useful in the light of the continuing concerns in common law jurisdictions as
to whether arbitration proceedings and its attendant components are automatically
confidential see for example the controversy arising from the Australian case of Esso
Australia Resources Ltd and Others v. Plowman (Minister for Energy and Minerals) and
Others (1995) 128 ALR 391. (For a useful discussion of the issues surrounding
confidentiality of commercial arbitrations see Arbitration International ,
Vol. 12, No. 3; an article by Patrick Neill QC).
Section 24 This section is obviously intended as a provision obliging the national court
to stay any action which is the subject matter of an arbitration agreement at the
request of at least one party in favour of a reference to arbitration unless [the court]
finds the arbitration agreement is null and void, inoperative or incapable of being
performed. The language of Section 24 appears to be based on Article 8(1) of the Model
Law. Since the language used here follows Article 8(1), the provision does not deal with
the consequential elements of a stay should a court following section 24 stay an action
before it in favour of an arbitration. Singapores International Arbitration Act deals with

these consequential elements in sections 6 and 7 of that act. In the Philippines, upon a
stay the court will have to exercise its inherent or other statutory powers to deal with
these matters. (The writer understands that the Supreme Court in the Philippines will as
parts of the Act indicate be promulgating various rules for the implementation of the Act.
See for example, Part B of Chapter 7 of the Act, which deals with the Recognition and
Enforcement of Foreign Arbitral Awards.
Section 25 This section is interesting to the extent that it expressly reinforces the desire
of the Philippines to favor arbitration. Thus, the first sentence of the section states
unequivocally that In interpreting the Act, the court shall have due regard to the policy
of the law in favor of arbitration. Couple this statement with the Declaration of Policy
(favoring ADR) in Section 2 of the Act, the intent of the legislators to favor arbitration
including international commercial arbitration is not in doubt. The edict requiring the
court to have due regard to the state policy is admirable and in this writers view
timely. Even, in jurisdictions where arbitration law may be said to have developed to a
mature state, judges frequently need to be reminded of the place for arbitration within the
States legal system. In a state like the Philippines where it is perhaps not unfair to say
that the practice of international commercial arbitration is still nascent, it is useful to
remind the courts as to the role and position of arbitration.
Section 26 This section defines the Appointing Authority within the meaning of the
Model Law. The section does not appear controversial. The Appointing Authority is
defined as the person or institution named as such in the arbitration agreement or where
institutional rules are adopted by the parties, the arbitral institution. In ad hoc arbitrations
where there is no agreement between the parties as to who shall be the appointing
authority, then Section 26 makes the National President of the Integrated Bar of the
Philippines (IBP) or his duly authorized representative the appointing authority. In the
Philippines where the Bar is generally influential as to State and public policies, it is not
surprising that the default appointing powers are reposed in the leader of the Bar.
Sections 28 and 29 In these two provisions are contained interim and provisional as
well as conservatory remedies, which are available to parties to an international
commercial arbitration.
Section 29 appear to extend and widen the scope of powers found in Section 28 although
it is more a case of an elaboration of the powers set out in section 28. Section 29
specifically refers to the granting of preliminary injunctions but includes also the power
to appoint a receiver, powers of detention and preservation and inspection of property,
which is the subject matter of the arbitration. Helpfully, section 29 makes clear that a
party may seek the courts assistance in enforcing the interim orders of an arbitral
tribunal.
Section 30 This section deals with the choice of the place of arbitration. This section is
interesting in that in the absence of parties agreeing or the arbitral tribunal appointing the
place of arbitration, it actually fixes the place to be in Metro Manila. This may have been
necessitated by the vastness and spread-out nature of the islands that make up the

Philippines. In line with party autonomy, the provision does not however affect the
parties ability to agree to meet anywhere however far-flung in the archipelago or
elsewhere outside the Philippines. To that extent the provision is curious.
Chapter 7 (Part B) of the Republic Act 9285
Recognition and Enforcement of Foreign Arbitral Awards
Section 42 (Chapter 7 Part B) of the Act makes the New York Convention the governing
regime for the recognition and enforcement of foreign arbitral awards. For the details
therefore see Articles IV and V of the Convention. Section 42 also provides that an
application for the recognition and enforcement of a foreign arbitral award should be
filed with the regional trial court in accordance with the rules to be promulgated by the
Supreme Court.
Section 43, which deals with the recognition and enforcement of non-New York
convention awards is exemplary. Much like section 46(3) of Singapores Arbitration Act
(Cap10), it opens the door for the recognition of non-New York Convention awards.
Section 43 is however more explicit in its reference to comity and reciprocity as grounds
for recognition of awards. Arguably, a Singapore Court dealing with section 46(3) of the
Arbitration Act (Cap10) would equally consider grounds of comity and reciprocity
despite section 46 of that act being silent.
Foreign Arbitral Award Not Foreign Judgment
The characterization of a Foreign Arbitral Award for the purposes of recognition and
enforcement is to be found in section 44 of the Act.
On reading this provision, it is perhaps not surprising if the reader should wonder at its
precise intent. It is useful to set out the entire provision below:
SEC. 44. Foreign Arbitral Award Not Foreign Judgment. A foreign arbitral award
when confirmed by a court of a foreign country, shall be recognized and enforced as a
foreign arbitral award and not a judgment of a foreign court.
The first paragraph makes clear that a foreign arbitral award is not to be treated as a
foreign judgment but a foreign arbitral award. This seems self-evident so it is difficult to
understand the thinking behind the language of the paragraph.
The combined effect of the next two paragraphs are however, clear. The provisions allow
foreign arbitral awards when confirmed by a regional trial court (presumably on an
application for recognition and enforcement under section 42 similar to the grant of
leave under Section 9 read with Section 29 of the International Arbitration Act (Cap
143A) by the High Court in Singapore) to be enforced in the same manner as final
and executory decisions of the courts of law of the Philippines.

In view of the application of the Model Law under the Act, section 45 premises the right
to oppose an application for recognition and enforcement of the arbitral award on
those grounds enumerated under Article V of the New York Convention. Significantly, it
also makes clear that Any other ground raised shall be disregarded by the regional trial
court.
As indicated earlier, rules upon which applications are to be made in pursuance of the Act
(implementing rules) have yet to be promulgated by the Supreme Court.
APPEALS UNDER THE ACT
Appeals from court decisions on Arbitral Awards are dealt with in section 46 of the Act.
Again, a reproduction below of the section is useful:
SEC. 46. Appeal from Court Decisions on Arbitral Awards. A decision of the
regional trial court confirming, vacating, setting aside, modifying or correcting an
arbitral award may be appealed to the Court of Appeals in accordance with the rules of
procedure to be promulgated by the Supreme Court.
The losing party who appeals from the judgment of the court confirming an arbitral
award shall be required by the appealant court to post counterbond executed in favor of
the prevailing party to the amount of the award in accordance with the rules to be
promulgated by the Supreme Court.
The section prescribes that an appeal is available against the decision of the regional trial
court confirming, vacating, setting aside, modifying or correcting an arbitral
award. Read literally, it raises the alarming possibility of a very wide scope for
appealing against arbitral awards. However, it is submitted that the very wide language
set out above, must be read in context and in light of the fact that the only grounds of
challenge against recognition and enforcement is on those grounds found in Article V of
the New York Convention.
GENERAL COMMENTS
There is no doubt that it is highly desirable and commendable on the part of the
Philippine legislature to have written into Philippine law the Republic Act 9285 to give
effect to the arbitral regime that is found in the UNCITRAL Model Law. As earlier
mentioned, the Philippines was one of the first Asian countries to have acceded to the
New York Convention in 1967. However, it is only now that an implementing law (as it
were) is legislated into law. Again, as mentioned earlier, the lapse of time is not surprising
since it has only been recently that Asian jurisdictions have become familiar (or more
aptly comfortable) with international commercial arbitration as a means of resolving
disputes.

Although, the Act is now in force the work is not fully done yet. As various parts of the
Act itself state, implementing rules will have to be promulgated by the Supreme Court to
give proper effect to the Acts provisions. We must await these.
Finally, the manner the Act will be implemented and its effectiveness will ultimately
depend on the interpretation to be given to its various principal provisions and
accompanying rules. This must in turn await the development and evolution of case law
from the courts in the Philippines and eventually the Supreme Court. The advantage that
the Philippines will have, in implementing the new arbitration law is that coming after the
laws of many other Model Law jurisdictions, it can draw from these jurisdictions the
experience of implementing similar arbitration laws. Thus, the Philippines can draw from
the experience and in some cases the jurisprudence of countries like Singapore for
example.

APPENDIX A:
EXECUTIVE ORDER NO. 1008--CREATING AN ARBITRATION MACHINERY
FOR THE PHILIPPINE CONSTRUCTION INDUSTRY
WHEREAS, the construction industry provides employment to a large segment of the
national labor force and is a leading contributor to the gross national product;
WHEREAS, it is of vital necessity that continued growth towards national goals shall not
be hindered by problems arising from, or connected with, the construction industry;
WHEREAS, there is a need to establish an arbitral machinery to settle such disputes
expeditiously in order to maintain and promote a healthy partnership between the
government and the private sector in the furtherance of national development goals;
WHEREAS, Presidential Decree No. 1746 created the Construction Industry Authority of
the Philippines (CIAP) to exercise centralized authority for the optimum development of
the construction industry and to enhance the growth of the local construction industry;
WHEREAS, among the implementing agencies of the CIAP is the Philippine Domestic
Construction Board (PDCB) which is specifically authorized by Presidential Decree No.
1746 to "adjudicate and settle claims and disputes in the implementation of public and
private construction contracts and for this purpose, formulate and adopt the necessary
rules and regulations subject to the approval of the President";
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by law, do hereby authorize the creation of an
arbitration machinery in the construction industry of the Philippines, and do hereby order
and ordain:
SECTION 1. Title - This Executive Order shall be known as the "Construction Industry
Arbitration Law".
SECTION 2. Declaration of Policy - There is hereby declared to be the policy of the State
to encourage the early and expeditious settlement of disputes in the Philippine
construction industry.
SECTION 3. Creation - There is hereby established in the CIAP a body to be known as
the Construction Industry Arbitration Commission (CIAC). The CIAC shall be under the
administrative supervision of the PDCB.
SECTION 4. Jurisdiction - The CIAC shall have original and exclusive jurisdiction over
disputes arising from, or connected with, contracts entered into by parties involved in
construction in the Philippines, whether the disputes arises before or after the completion
of the contract, or after the abandonment or breach thereof. These disputes may involve
government or private contracts. For the Board to acquire jurisdiction, the parties to a
dispute must agree to submit the same to voluntary arbitration.

The jurisdiction of the CIAC may include but is not limited to violation of specifications
for materials and workmanship; violation of the terms of agreement; interpretation and/or
application of contractual provisions; amount of damages and penalties; commencement
time and delays; maintenance and defects; payment default of employer or contractor and
changes in contract cost.
Excluded from the coverage of this law are disputes arising from employer-employee
relationships which shall continue to be covered by the Labor Code of the Philippines.
SECTION 5. Composition of the Board - The Commission shall consist of a Chairman
and two (2) members, all to be appointed by the CIAP Board upon recommendation by
the members of the PDCB.
SECTION 6. Functions of the Commission - The Commission shall perform, among
others that may be conferred by law, the following functions:
1. To formulate and adopt an arbitration program for the construction industry;
2. To enunciate policies and prescribe rules and procedures for construction
arbitration;
3. To supervise the arbitration program, and exercise such authority related thereto
as regards the appointment, replacement or challenging of arbitrators; and
4. To direct its officers and employees to perform such functions as may be assigned
to them from time to time.
SECTION 7. Compensation of the Commission - The members of the Commission shall
receive such per diems and allowances as may be fixed by the CIAP from time to time.
SECTION 8. Term - The term of office of the members of the Commission shall be six (6)
years; provided, however, that of the Commission members first appointed, the chairman
shall hold office for six years; the other member for four (4) years; and the third for two
(2) years. The appointment to any vacancy in the Commission shall only be for the
unexpired portion of the term of the predecessor.
SECTION 9. Quorum - The presence of a majority of the members of the Commission
shall constitute a quorum for the transaction of business.
SECTION 10. Deliberations - The decisions of the Commission shall be arrived at by a
majority vote.
SECTION 11. Secretariat - The Commission shall have a Secretariat to be headed by an
Executive Director who shall be responsible for receiving requests for arbitration and
other pleadings; for notifying the parties thereto; and, for fixing and receiving filing fees,
deposits, costs of arbitration, administrative charges, and fees. It shall be the duty of the
Executive Director to notify the parties of the awards made by the arbitrators.
The Secretariat shall have among others a Publication and a Training Division.

SECTION 12. Authority to Appoint - The Commission is hereby authorized to appoint the
Executive Director, the consultants, the arbitrators, as well as personnel and staff.
SECTION 13. Authority to Collect Fees - The Commission is empowered to determine
and collect fees, deposits, costs of arbitration, as well as administrative and other charges
as may be necessary in the performance of its functions and responsibilities. The CIAC is
authorized to use its receipts and deposits of funds to finance its operations subject to the
approval of the PDCB, the provisions of any law to the contrary notwithstanding.
SECTION 14. Arbitrators - A sole arbitrator or three arbitrators may settle a dispute.
Where the parties agree that the dispute shall be settled by a sole arbitrator, they may, by
agreement, nominate him from the list of arbitrators accredited by the CIAC for
appointment and confirmation. If the parties fail to agree as to the arbitrator, the CIAC
taking into consideration the complexities and intricacies of the dispute/s have the option
to appoint a single arbitrator or an Arbitral Tribunal.
If the CIAC decides to appoint an Arbitral Tribunal, each party may nominate one (1)
arbitrator from the list of arbitrators accredited by the CIAC for appointment and for
confirmation. The third arbitrator who is acceptable to both parties confirmed in writing
shall be appointed by the CIAC and shall preside over the Tribunal.
Arbitrators shall be men of distinction in whom the business sector and the government
can have confidence. They shall not be permanently employed with the CIAC. Instead,
they shall render services only when called to arbitrate. For each dispute they settle, they
shall be given fees.
SECTION 15. Appointment of Experts - The services of technical or legal experts may be
utilized in the settlement of disputes if requested by any of the parties or by the Arbitral
Tribunal. If the request for an expert is done by either or by both of the parties, it is
necessary that the appointment of the expert be confirmed by the Arbitral Tribunal.
Whenever the parties request for the services of an expert, they shall equally shoulder the
expert's fees and expenses, half of which shall be deposited with the Secretariat before
the expert renders service. When only one party makes the request, it shall deposit the
whole amount required.
SECTION 16. Arbitration Expenses - Arbitration expenses shall include the filing fee,
administrative charges, arbitrator's fees; fee and expenses of the expert, and others which
may be imposed by the CIAC.
The administrative charges and the arbitrator's fees shall be computed on the basis of
percentage of the sum in dispute to be fixed in accordance with the Table of
Administrative Charges and Arbitrator's Fees.
SECTION 17. Deposit to Cover Arbitration Expenses - The CIAC shall be authorized to
fix the amount to be deposited which must be equivalent to the expected arbitration
expenses. The deposit shall be paid to the Secretariat before arbitration proceedings shall

commence. Payment shall either be shared equally by the parties or be paid by any of
them. If one party fails to contribute his share in the deposit, the other party must pay in
full. If parties fail to tender the required deposit, the case shall be considered dismissed
but the parties shall still be liable to pay one half (1/2) of the agreed administrative
charge.
SECTION 18. Reports - The Commission shall, within three (3) months after the end of
the fiscal year, submit its annual report to the CIAP. It shall, likewise, submit such
periodic report as may be required from time to time.
SECTION 19. Finality of Awards - The arbitral award shall be binding upon the parties. It
shall be final and inappealable except on questions of law which shall be appealable to
the Supreme Court.
SECTION 20. Execution and Enforcement of Awards - As soon as a decision, order or
award has become final and executory, the Arbitral Tribunal or the single arbitrator, with
the concurrence of the CIAC, shall motu propio or on motion of any interested party,
issue a writ of execution requiring any sheriff or other proper officer to execute said
decision, order or award.
SECTION 21. Rule-Making Power - The CIAC shall formulate and adopt necessary rules
and procedures for construction arbitration.
SECTION 22. Separability Clause - The provisions of this Executive Order are declared
to be separable and if any provision on the application hereof is held invalid or
unconstitutional, the validity of the remaining provision not otherwise affected shall
remain in full force and effect.
SECTION 23. Repealing Clause - All provisions of existing laws, proclamations, decrees,
letters of instructions and executive orders contrary to or inconsistent herewith are hereby
repealed or modified accordingly.
SECTION 24. Effectivity of Clause - This Executive Order shall take effect immediately.
Done in the City of Manila, this 4th day of February in the Year of our Lord, Nineteen
Hundred and Eighty-Five.
(SGD) FERDINAND E. MARCOS
President of the Philippines

By the President:
(SGD) JUAN C. TUVERA
Presidential Executive Assistant

APPENDIX B:
RULES OF PROCEDURES GOVERNING
CONSTRUCTION ARBITRATION
Approved and promulgated by the Construction Industry Arbitration Commission (CIAC) on Aug. 23, 1988
and as amended by CIAC Res. Nos. 2-91, 3-93, 1-94, 2-95, 2-96, 6-96, 1-98, 2-98, 3-98, 8-98, 6-99, & 012002.
Adopted on June 21, 1991, August 25, 1993, October 25, 1994, November 7, 1995, May 28, 1996, August
8, 1996, March 31, 1998, April 28, 1998, July 9, 1998, December 15, 1998, July 15, 1999,and 17 January
2002, respectively.

Pursuant to Section 21 of Executive Order No. 1008 creating the Construction Industry
Arbitration Commission (CIAC), the following Rules of Procedure Governing
Construction Arbitration are hereby promulgated.
ARTICLE I
POLICY AND OBJECTIVES
SECTION 1. Statement of Policy and Objectives - It is the policy and objective of these
Rules to provide a fair and expeditious settlement of construction disputes
through a non- judicial process which ensures harmonious and friendly
relationships between or among the parties.
SECTION 2. Applicability of Rules - These Rules are applicable to proceedings in
arbitration either before a single Arbitrator or an Arbitral Tribunal.
SECTION 3. Technical Rules not Binding - In any proceeding before a single Arbitrator
or Arbitral Tribunal, the rules of evidence prevailing in courts of law or
equity need not be controlling and it is the spirit and intention of the
Construction Industry Arbitration Commission that Arbitrators shall use
every and all reasonable means to ascertain the facts in each case speedily
and objectively and without regard to technicalities of law or procedure,
all in the interest of substantive due process.
ARTICLE II
REQUEST FOR ARBITRATION
SECTION 1. Submission to Arbitration - Any party to a construction contract wishing to
have recourse to arbitration by the Construction Industry Arbitration
Commission (CIAC) shall submit its Request for Arbitration in sufficient
copies to the Secretariat of the CIAC; PROVIDED, that in the case of
government construction contracts, the claimant against the government
shall state in the submission that he has exhausted all administrative
remedies, or that there is unreasonable delay, on the part of the government
office or officer to whom appeal is made, in acting upon the claim, or that,
due to the application for interim relief, exhaustion of administrative
remedies is not practicable.

SECTION 2. Contents of Request - The Request for Arbitration shall, inter alia, contain
the following information:
a. Names in full, description, and addresses of the parties;
b. A statement of the claimant's case;
c. Copy of the construction contract in question;
d. The relevant agreements, and in particular the agreement to arbitrate,
and such documentation or information as will serve clearly to establish
the circumstances of the case.
SECTION 3. Notice to Respondent - The CIAC shall within three (3) days from filing
transmit a copy of the Request of Arbitration and of the documents annexed
to the Respondent for his Answer.
SECTION 4. Commencement of Arbitral Proceedings - The date when the Request for
Adjudication is filed with the CIAC shall, for all intents and purposes, be
deemed to be the date of commencement of the proceedings.
ARTICLE III
EFFECT OF THE AGREEMENT TO ARBITRATE
SECTION 1. Submission to CIAC Jurisdiction - An arbitration clause in a construction
contract or a submission to arbitration of a construction dispute shall be
deemed an agreement to submit an existing or future controversy to CIAC
jurisdiction, notwithstanding the reference to a different arbitration
institution or arbitral body in such contract or submission. When a contract
contains a clause for the submission of a future controversy to arbitration, it
is not necessary for the parties to enter into a submission agreement before
the claimant may invoke the jurisdiction of CIAC.
An arbitration agreement or a submission to arbitration shall be in writing,
but it need not be signed by the parties, as long as the intent is clear that the
parties agree to submit a present or future controversy arising from a
construction contract to arbitration.
It may be in the form of exchange of letters sent by post or by telefax,
telexes, telegrams or any other mode of communication.
SECTION 2. Failure or Refusal to Arbitrate - Where the jurisdiction of CIAC is properly
invoked by the filing of a Request for Arbitration in accordance with these
Rules, the failure or refusal of the respondent to arbitrate shall not affect the
proceedings. In such case, CIAC shall appoint the sole arbitrator from
among the list of accredited arbitrators, or if the arbitration clause provides
for a panel of three (3) arbitrators, CIAC shall name the arbitrator for the
respondent. Arbitration proceedings shall continue notwithstanding the

absence or lack of participation of the respondent, and the award shall be

made after receiving the evidence of the claimant. In the event that, before
award, the respondent shall appear and offer to present his evidence, the
arbitrator shall reopen the proceedings and allow the respondent to present
his evidence, but evidence already received shall not be affected by the
reopening of the proceedings.
ARTICLE IV
ABSENCE OF AGREEMENT TO ARBITRATE
SECTION 1. When Arbitration Cannot Proceed - Where the contract between the parties
did not provide for arbitration and the parties cannot agree to submit the
dispute(s) to arbitration, the Claimant/s shall be informed that the arbitration
cannot proceed.
SECTION 2. Non-Arbitrable Issues - Pursuant to Section 4 of Executive Order No. 1008,
claims for moral damages, exemplary damages, opportunity/business losses
in addition to liquidated damages, and attorney's fees are not arbitrable
except when the parties acquiesce or mutually agree to submit the same for
arbitration and to abide by the decision of the arbitrator thereon.
Claims for unrealized expected profits (built-in in the contract price) and
issues on rescission or termination of a contract, however, are arbitrable.
ARTICLE V
CHOICE/SELECTION OF ARBITRATORS
SECTION 1. Number of Arbitrators - A sole Arbitrator or an Arbitral Tribunal of three
Arbitrators may settle a dispute.
The Commission shall appoint the arbitrator/s based on the mode of
arbitration agreed upon by the parties as specified in the arbitration clause of
the contract or in the agreement to arbitrate. In the absence of a stipulation
thereon, the Commission, taking into consideration the complexities and
intricacies of the dispute/s or the Sum in Dispute, has the option to appoint a
Sole Arbitrator or an Arbitral Tribunal.
SECTION 2.Sole Arbitrator - Where the parties have agreed that the dispute(s) shall be
settled by a Sole Arbitrator, each party shall have the right to nominate three
arbitrators. If any or both of the parties fail to submit the names of their
nominees within the period/s prescribed by the Commission, a sole
arbitrator shall be appointed by the CIAC.
If there is a common nominee, CIAC shall appoint him as Sole Arbitrator,
provided he is not disqualified and has declared his availability. In the
absence of a common nominee or in cases where the common nominee is
disqualified or is not available, CIAC may appoint a Sole Arbitrator or an

Arbitral Tribunal. If CIAC decides to appoint a Sole Arbitrator, it shall select

the appointee who is not a nominee of one of the parties and who is not
disqualified and is available for appointment.
SECTION 3. Arbitral Tribunal - Where the parties agree that the dispute shall be settled
by an Arbitral Tribunal, each party shall have the right to nominate six
arbitrators from the list of CIAC-accredited arbitrators. If there is no
common nominee, the CIAC shall choose and appoint, as members of the
Tribunal, one arbitrator from the claimants nominees and another arbitrator
from respondents nominees. The Third Arbitrator shall be selected by the
two Arbitrators first chosen within fifteen (15) days from acceptance of their
appointment. The three arbitrators shall decide among themselves who will
be the Chairman. In case of failure to agree on the third member within such
period, the CIAC shall, within fifteen (15) days thereafter, appoint the third
member from its list of accredited arbitrators.
If there is a common nominee, the Commission shall appoint the common
nominee and one from each list submitted by the parties. The three
arbitrators appointed shall designate their Chairman. If there are two
common nominees, the Commission shall appoint them and the third
member who shall be selected by the first two appointees within the period
prescribed above. If there are three common nominees, all of them shall be
appointed. The appointees shall designate their Chairman.
SECTION 4. Disqualification of or Non-acceptance by Nominees - If the nominee(s) of a
party shall be disqualified or fail or refuse to accept the appointment, CIAC
shall choose and appoint any qualified arbitrator who is willing to be so
appointed.
SECTION 5. Challenge - An Arbitrator may be challenged by a party at any time after his
appointment but before award upon the ground of his partiality, bias,
incompetence, or professional misconduct. A party may also request the
inhibition of an arbitrator upon the same grounds.
A motion for inhibition or a request for the disqualification and replacement
of an arbitrator shall be treated as a challenge.
The challenge, motion or request shall be in the form of a complaint under
oath, stating distinctly and concisely the facts complained of, supported by
affidavits, if any, of persons having personal knowledge of the facts therein
alleged and shall be accompanied with copies of such documents as may
substantiate said facts.
The arbitrator concerned shall be given by CIAC an opportunity to be heard.
He may, without admitting the existence of the ground of the challenge,
motion or request, choose to inhibit himself but his decision shall be subject
to approval by CIAC.

In case the challenged arbitrator is allowed to inhibit himself or is removed,

CIAC shall promptly appoint his replacement. If the arbitrator concerned is
the third member of the Arbitral Tribunal, the first two members thereof
shall select his replacement.
The decision of the CIAC to retain or replace an arbitrator shall be final.
SECTION 6. When Arbitrator Previously Acted as Conciliator/ Mediator - An Arbitrator
who acted as conciliator/mediator in a case previously brought before him
for conciliation/mediation cannot act as arbitrator for the same case when
brought to arbitration.
ARTICLE VI
THE ARBITRATORS
SECTION 1. General Qualification of Arbitrators - The Arbitrators shall be men of
distinction in whom the business sector and the government can have
confidence. They shall be technically qualified to resolve any construction
dispute expediently and equitably. The Arbitrators shall come from different
professions. They may include engineers, architects, construction managers,
engineering consultants, businessmen familiar with the construction industry
and lawyers who are experienced in construction disputes.
SECTION 2. The Arbitrators Must be CIAC-Accredited - The Sole Arbitrator or the
members and Chairman of an Arbitral Tribunal originally appointed by
CIAC for a dispute or their replacement shall come from the list of CIACaccredited arbitrators.
SECTION 3. Arbitrators Not Permanent Employees of CIAC - The Arbitrators shall not
be permanently employed by CIAC. They shall render service only when
called upon to arbitrate a construction dispute.
SECTION 4. Arbitrators shall not be civilly liable for acts done in the performance of
their official duties except as provided in Section 38 (1), Chapter 9, Book 1
of the Administrative Code of 1987, upon a clear showing of bad faith,
malice or gross negligence.
ARTICLE VII
APPOINTMENT AND ACCEPTANCE OF ARBITRATORS
SECTION 1.Communication of Appointments - After the CIAC (or the two members
first chosen as the case may be) has selected the Arbitrator(s) for a particular
case, the Secretariat shall communicate the appointment (or proposed
appointment) to the Arbitrator(s).
SECTION 2. Disclosure by Arbitrator of Disqualification - Upon acceptance of
appointment, the Arbitrator(s) shall disclose in writing to the CIAC any
circumstance likely to create in either party a presumption of bias or which

he believes might disqualify him as an impartial Arbitrator. Such written

disclosure shall be communicated to the parties immediately by the
Secretariat. The purpose of such disclosure shall be to enable either party to
investigate and ascertain whether there is a substantial legal basis to file a
motion for inhibition of the arbitrator concerned or seek his replacement.
SECTION 3. Acceptance or Refusal - The arbitrator must communicate to the
Construction Industry Arbitration Commission (CIAC) the acceptance or
refusal of his/her appointment within five (5) working days from receipt
thereof. If no communication is received within the prescribed period, the
Commission shall appoint a replacement from the list of the party who
nominated him/her or, if none is available or qualified, from the list of
CIAC-accredited arbitrators.
SECTION 4. Vacancies - If any Arbitrator should resign, be incapacitated, refuse or be
unable, or be disqualified for any reason to perform the duties of his office,
the CIAC shall, within five (5) working days from the occurrence of a
vacancy or refusal/inability to accept appointment, appoint a substitute(s) to
be chosen from a list of alternatives previously agreed upon by the parties.
In the absence of such a list, the CIAC shall fill the vacancy from the list of
accredited arbitrators.
ARTICLE VIII
PRELIMINARY CONFERENCE
SECTION 1. Preliminary Conference - In any construction dispute, after the respondent
has filed his Answer, the Arbitrator/Arbitral Tribunal shall set the case for
preliminary conference and a notice to the parties thereof shall be sent at
least five (5) days before the date set but not later than 15 days after
appointment of arbitrator to consider the following:
1. possibility of amicable settlement;
2. necessity or desirability of amendments to pleadings;
3. possibility of obtaining stipulations or admission of facts and/or
documents to avoid unnecessary proof;
4. limitation of the number of witnesses;
5. simplification of the issues;
6. and such other matters as may aid in the just and speedy
disposition of the case.

ARTICLE IX
TERMS OF REFERENCE
SECTION 1. Contents - Before proceeding with the hearing of the case, the Arbitrator(s)
shall formulate the Terms of Reference (TOR) on the basis of the documents
submitted and agreements reached in the preliminary and subsequent
conferences with the parties. The TOR shall include the following
particulars:
a) the full names of the parties and their personal circumstances;
b) the addresses of the parties to which notifications or
communications arising in the course of the arbitration may validly
be made;
c) a summary of the parties' respective claims;
d) definition of the issues to be determined;
e) the Arbitrators' full names, and addresses;
f) the place of arbitration;
g) the breakdown, schedule of payment, and sharing of arbitration
fees;
h) such other particulars as may be required to make the arbitral
award enforceable in law, or may be regarded as helpful by the
CIAC or the Arbitrator(s).
SECTION 2. Signing of the Terms of Reference - The Terms of Reference mentioned in
Section 1 hereof shall be signed by the parties and the Arbitrator(s), within
fifteen (15) days from the preliminary conference or the last meeting held
for the purpose of finalizing the TOR as the case may be. The same shall
then be transmitted to the CIAC Secretariat within three (3) days after the
signing.
Upon the Arbitrator's request, the Commission through the Secretariat may
in exceptional circumstances, extend this time limit.
SECTION 3. Arbitration To Proceed Even Without the Terms Of Reference - Except in
cases where arbitration cannot proceed pursuant to Sections 1 and 2 of
Article IV of these Rules, arbitration shall proceed despite the absence of the
Terms of Reference (TOR) due to the refusal of any of the parties to sign or
for reasons other than the exceptions stated above. In the absence of a TOR,
all of the issues and related matters in the pleadings filed by the parties and
admitted by the Sole Arbitrator or the Arbitral Tribunal, as the case may be,
shall be deemed submitted for resolution by the appointed arbitrator(s).

ARTICLE X
ANSWER TO THE REQUEST
SECTION 1. Time to Answer - The Respondent shall, within fifteen (15) days from the
receipt of the Request for Arbitration and of the documents referred to
Section 2 of Article II, set out his defense in an Answer, and submit relevant
documents. In exceptional circumstances, the Respondent may apply to the
CIAC for an extension of time for the filing of his defense and his
documents. If the Respondent fails to do so, the Commission shall proceed
with the arbitration in accordance with these Rules.
SECTION 2. Transmittal of Answer - A copy of the Answer and the documents attached
thereto, if any, shall be transmitted in sufficient copies to the Claimant and
to the Commission.
ARTICLE XI
COUNTERCLAIM/S
SECTION 1. Statement of Counterclaim - If the Respondent wishes to make a
counterclaim(s), the same shall be included in the Answer. In such case,
Respondent shall be required, upon filing of the Answer with
counterclaim(s), to pay a deposit of 10% of arbitrator's fees (based on the
amount of counterclaim) or P 5,000 whichever is higher but not to exceed P
50,000. Where the total amount of counterclaim(s) exceeds P 1 million,
Respondent shall, upon filing of its Answer with counterclaim/s and in
addition to deposit of arbitrator's fees, deposit an amount equivalent to 1/10
of 1% of the amount of counterclaim. Such deposit shall be treated as
Respondent's initial payment of its share of the special assessment fee of
1/10 of 1% of the sum in dispute imposed under CIAC Resolution No. 2-96.
If the counterclaim is a non-monetary one, the amount to be charged shall be
in accordance with the approved Table of Fees for such claims.
SECTION 2. Reply to Counterclaim - The Claimant shall file a reply in sufficient copies
with the Commission and shall furnish the Respondent a copy thereof within
fifteen (15) days from date of receipt of the counterclaim.
ARTICLE XII
PLEADINGS AND WRITTEN STATEMENTS,
NOTIFICATIONS OR COMMUNICATIONS
SECTION 1. Number of Copies - All pleadings and written statements submitted by the
parties, as well as all documents attached thereto, shall be in sufficient
copies to provide one copy for each party, plus one for each Arbitrator, and
one for the Secretariat.
SECTION 2. Notices - Notifications or communications from the Secretariat and/or the
Arbitrator(s) shall be validly made if they are delivered against receipt or

forwarded by registered mail to the address or last known address of the

party/ies for whom the same are intended as notified by the party/ies in
question or by the other party/ies as appropriate.
Notification or communication shall be deemed to have been effected on the
date when received.
SECTION 3. Confidentiality of Proceedings The arbitration proceedings shall be
considered confidential and shall not be published except (i) with the
consent of the parties, or (ii) when necessary in case where resort to the
Court is made under the Rules of Court. The term arbitration proceedings
shall include communications to or from CIAC, the pleadings, applications
and other papers filed with CIAC, sworn statements, documentary and
testimonial evidence, reports and minutes taken of the proceedings, and
other orders, decision, award or resolution issued by the Arbitrator(s).
ARTICLE XIII
VENUE AND GENERAL MATTERS
SECTION 1. Venue, Date and Time of Hearing - The venue, date and time of the arbitral
proceedings shall be mutually agreed upon by the parties and the
Arbitrator(s) or an Arbitral Tribunal. In the event there is disagreement, the
choice of the Arbitrator(s) shall prevail.
SECTION 2. Recording of Proceedings - Proceedings before an Arbitrator or an Arbitral
Tribunal may be recorded by means of any audio and /or audio-visual
recording equipment such as, but not limited to, tape recorders and video
cameras, or if a stenographer is available, either through stenographic notes
or minutes taken of the proceedings. All recordings on tapes, films,
cassettes, disks, or diskettes shall be done by the CIAC and shall remain in
its custody for safekeeping and eventual disposal after the resolution of the
case. Copies of such recordings including transcripts and minutes of the
proceedings shall be made available to the parties upon request for a
nominal fee. The Sole Arbitrator or the Chairman of the Arbitral Tribunal, as
the case may be, may opt to dispense with the use of recording devices or
stenographic services and take down notes of the proceedings. Such notes
taken shall be filed with the CIAC and shall be part of the records of the
case. Copies of the notes filed shall be made available to the parties, upon
request, at reproduction cost.
SECTION 3. Control Over Proceedings - The Arbitrator or the Chairman of the Arbitral
Tribunal shall exercise complete control over all proceedings to insure a
speedy, adequate and justifiable disposition of the disputes and cases
submitted to them for resolution.
SECTION 4. Extent of Power of Arbitrator - The Arbitrator or the Arbitral Tribunal shall
decide only such issues and related matters as are submitted to them for

adjudication. They have no power to add, to subtract from, modify, or

amend any of the terms of the contract or any supplementary agreement
thereto, or any rule, regulation or policy promulgated by the CIAC.
SECTION 5. Appointment of Experts - The service of technical or legal experts may be
utilized in the settlement of disputes if requested by any of the parties or by
the Arbitral Tribunal. If the request for an expert is done by either or by both
of the parties, it is necessary that the appointment of the expert be confirmed
by the Arbitral Tribunal.
Whenever the parties request for the services of an expert, they shall equally
shoulder the expert's fees and expenses, half of which shall be deposited
with the Secretariat before the expert renders service. When only one party
makes the request, it shall deposit the whole amount required. If the request
for an expert is by the Arbitrator(s), the cost of such service(s) shall be
considered part of the arbitration expenses which may be ordered to be paid
by the losing party or by both parties as the arbitrator(s) in his/their award
may adjudge, in the absence of a provision in the Terms of Reference signed
by the parties relative to the sharing of these expenses; provided, however,
both parties consented to the hiring of an expert.
SECTION 6. Interpretation and Application of Rules - The Sole Arbitrator or the Arbitral
Tribunal shall interpret and apply these Rules in so far as they relate to
his/its powers and duties. Where there is an Arbitral Tribunal, and a
difference arises among the Arbitrators concerning the meaning or
application of these Rules, the same shall be decided by a majority vote.
SECTION 7. Attendance of Hearings - Persons having direct interest in the arbitration are
entitled to attend the hearings. It shall be discretionary upon the
Arbitrator/Arbitral Tribunal to determine the propriety of the attendance of
any other person. The Arbitrator/Arbitral Tribunal shall have the power to
require the exclusion of any witness.
SECTION 8. Adjournments - The Arbitrator/Arbitral Tribunal for good cause shown, may
adjourn the hearing upon his/its own initiative or upon the request of one of
the parties. Adjournment shall not be more than five (5) working days.
Hearings may be adjourned for more than five (5) working days when such
have been suspended due to payment defaults of any or both of the parties.
The Arbitrator(s) shall order the suspension of hearings upon advice by the
CIAC of non-payment of arbitration fees by one or both parties. Hearings
shall resume upon notice by CIAC of compliance by the defaulting
party/ies.
SECTION 9. Arbitration in the Absence of the Party - The Arbitration may proceed
despite the absence of any party who after due notice, fails to be present or
fails to obtain an adjournment. An award, however, shall not be made solely

on the default of a party. It shall be made on the basis of evidence submitted

and proven.
SECTION 10. Waiver of Rules - Any party who proceeds with the arbitration after
knowledge that any provision or requirement of these Rules has not been
complied with and fails to state his objection thereto in writing, shall be
deemed to have waived his right to object.
SECTION 11. Expenses and Deposit - Arbitration expenses shall include the filing fee;
administrative charges, arbitrator's fees, fee and expenses of the expert,
and others which may be imposed by the CIAC.
The administrative charges and arbitrator's fees shall be in accordance
with the Table of Administrative Charges and Arbitrator's Fees.
The CIAC Secretariat shall charge the Claimant an initial filing fee of P
3,000 plus a deposit equivalent to 10% of expected arbitrator(s)' fees
(based on the claim) or P 5,000 whichever is higher but not to exceed P
50,000 upon filing of the claim. If the total amount of claim exceeds P 1
million, Claimant shall, upon filing and in addition to the above fees,
deposit an amount equivalent to 1/10 of 1% of the amount claimed. Such
deposit shall be treated as Claimant's initial payment of its share of the
special assessment fee of 1/10 of 1% of the sum in dispute imposed under
CIAC Resolution No. 2-96, as amended by CIAC Resolution Nos. 7-98
and 5-99 Where the case is a non-monetary claim, the fees and deposit to
be charged shall be in accordance with the approved Table of Fees for
such claims.
The CIAC may fix the Arbitrator(s)' fees at a figure higher or lower than
that which would result from the application of the Table of Fees if in the
exceptional circumstances of the case, the same appears to be necessary.
SECTION 12. Freedom to Settle - The parties shall be free to settle the dispute(s)
anytime even if the same is under arbitration. In such case, the actual
expenses incurred for arbitration shall be charged against the deposit. If
the deposit is insufficient, the parties shall equally shoulder the balance.
The parties may either jointly withdraw or submit their compromise
agreement to the Commission for the rendition of an award by the
arbitrator/s, if the arbitrator(s) have already been appointed. Where the
arbitrators have been appointed and proceedings have commenced, the
arbitration fees to be charged the parties shall be in accordance with the
stage of proceedings.
SECTION 13. Small Claims - Cases where the sum in dispute is P 1 million or less may,
upon request of either party, be categorized by CIAC as a small claim for
purposes of qualifying for assistance under the Arbitration Development

Fund established by CIAC in Resolution No. 2-96, as amended by CIAC

Resolution Nos. 7-98, 5-99 and 02-2000.
A case categorized as a small claim shall be handled by a Sole Arbitrator
who shall be appointed by CIAC from among its accredited arbitrators
residing nearest to the venue of hearings or to the place of residence of the
party based outside of Metro Manila. The expenses of the Sole Arbitrator
and CIAC staff consisting of actual expenses for travel, accommodations,
and administrative costs for at most one (1) day incurred for hearings
outside of Metro Manila, shall be charged against the CIAC Arbitration
Development Fund. Expenses for hearings exceeding one (1) day,
however, shall be shouldered equally by the parties.
Administrative expenses and arbitrator's fees for cases falling under this
category shall be charged against the CIAC Arbitration Development
Fund. Mediation or conciliation fees prior to arbitration, shall also be
charged against said fund. A minimal filing fee, however, of 1% of the
claim shall be charged the Claimant. Small claims shall be handled only
by a sole arbitrator or mediator whose fees shall be at a fixed rate of 3% of
the claim but not less than P10,000.
ARTICLE XIV
ARBITRATION PROCEEDINGS
SECTION 1. Order of Proceedings - A hearing shall be opened by recording of the place,
time and date of hearing, the presence of the Arbitrator(s), parties, and
witnesses, if any. The names and addresses of all witnesses and exhibits in
the order received shall be made part of the record.
SECTION 1.1
Quorum - Two members of a tribunal shall
comprise a quorum for the purpose of conducting a hearing.
SECTION 2. Briefing on Rules and Procedures - At the initial hearing, the
Arbitrator/Arbitral Tribunal shall inform the parties of the general rules and
procedures that will be adopted to insure a speedy and adequate disposition
of the issues.
SECTION 3. Opening Statements - The initial proceedings may start with the parties
making an opening statement or its explanation of the issues, a brief
statement of allegations, what it proposes to prove and the relief sought.
SECTION 4. Clarification of the Issues - After the opening statements, the
Arbitrator/Arbitral Tribunal shall clarify and further redefine the issues, if
necessary.
SECTION 5. Order of Presentation - It shall be within the discretion of the
Arbitrator/Arbitral Tribunal to determine the order of presentation.
Generally, the party whose action has given rise to the dispute, or the party

who seeks to enforce a right or establish a claim shall be required to present

its evidence first, followed by the other party.
SECTION 6. Expeditious Procedures - The Arbitrator/Arbitral Tribunal shall at all times
adopt the most expeditious procedures for the introduction and reception of
evidences, and shall have complete control over the proceedings, but in any
case shall afford full and equal opportunity to all parties to present relevant
evidence.
SECTION 7. Evidence - The parties may offer such evidence they desire and shall
produce such additional documents and witnesses as the Arbitrator/Arbitral
Tribunal may deem necessary to an understanding and determination of the
dispute(s). The Arbitrator/Arbitral Tribunal shall act according to justice and
equity and merits of the case, without regard to technicalities or legal forms
and need not be bound by any technical rule of evidence. All evidences shall
be taken in the presence of the Arbitrator or a majority of the Arbitrators in
an Arbitral Tribunal and all of the parties, except where any of the parties is
absent, or has waived his right to be present.
Upon motion of either or both of the parties, or on its own initiative, the
Arbitrator/Arbitral Tribunal may request any person, board, body, tribunal,
or government office, agency or instrumentality, or corporation to produce
real or documentary evidences necessary for the proper adjudication of the
issues.
The Arbitrator/Arbitral Tribunal may, likewise, request any person to give
testimony at any proceedings for arbitration.
SECTION 8. Presentation of Evidence - Unless the parties shall agree upon a different
mode of presentation of evidence, the Arbitrator/Arbitral Tribunal may
require the simultaneous or successive submission of affidavits of witnesses
which contain both direct and rebuttal testimony, attached to which shall be
the documents which they shall identify to support their respective
declarations. These documents shall be properly marked for purposes of
identification.
SECTION 9. Examination by Arbitrator/Arbitral Tribunal - The Arbitrator/Arbitral
Tribunal may conduct the direct and cross- examination of such witnesses
whether or not the parties are represented by counsel. Such counsel at his
request may be allowed to ask additional direct or cross-examination
questions of any witness.
SECTION 10. Documentary Evidence - As a general rule, no documentary evidence(s)
presented and offered shall be rejected unless the same is found by the
Arbitrator/Arbitral Tribunal to be completely irrelevant.
SECTION 11. Offer of Documents - All documents not offered with the
Arbitrator/Arbitral Tribunal at the hearing but which are arranged at the

hearing subsequently by agreement of the parties to be submitted, shall be

filed within five (5) days from the termination of the hearing. All parties
shall be afforded opportunity to examine such documents.
SECTION 12. Ocular Inspection - The Arbitrator/Arbitral Tribunal may at any time
during working hours, after notice to the parties who may, if they so
desire, be present, conduct an ocular inspection of any building, place or
premises, including any work, material, implement, machinery, appliance
or any object therein, and ask any employee or laborer, or other person, as
the case may be, for any information or data concerning any matter, or
questions relative to the object of the investigation.
SECTION 13. Interim Measures - In the course of the proceedings, the Arbitrator(s) may,
upon the request of either of both parties or upon his/their own initiative,
issue orders as is necessary for the following :
a. to ensure the enforcement of the award;
b. to prevent loss or deterioration of property;
c. to minimize or avoid undue delays in project or contract
implementation; or
d. such other measures deemed by the Arbitrator(s) to be necessary to
prevent a miscarriage of justice or abuse of rights of any of the
parties.
SECTION 14. Closing of the Hearings - The Arbitrator/Arbitral Tribunal shall inquire
from all parties whether they have any further proofs to offer or witnesses
to be heard. Upon receiving negative replies, the Arbitrator/Arbitral
Tribunal shall declare the hearing closed and the minutes thereof shall be
recorded.
SECTION 15. Reopening of Hearing - The hearing may be reopened by the Arbitrators
on their own motion or upon the request of any party, upon good cause
shown, at any time before the award is rendered. When hearings are thus
reopened, the effective date for the closing of the hearing shall be the date
of closing of the reopened hearing.
SECTION 16. Summation - The parties may make a brief oral summation and arguments
at the end of the hearing.
SECTION 17. Submission of Memoranda - If any or both of the parties so desire, written
memoranda may be submitted within five (5) working days from the
termination of the hearing or from the date of the filing of additional
documents as previously agreed upon, whichever is later.

If both parties agree to submit memoranda, the filing shall be

simultaneous.
SECTION 18. Award or Decision on the Pleadings - Instead of a formal hearing, the
parties may agree to submit the issues for resolution after the filing of
pleadings, documents, evidences, or memoranda.
SECTION 19. Period to Make Award - The number of days within which an award shall
be made will start from the date of the termination of the hearing, or from
the filing of additional documents, or from the submission date of
memoranda, pleadings, documents or evidences whichever is later.
ARTICLE XV
THE ARBITRATION AWARD
SECTION 1. Time of Award - The award shall be rendered promptly by the Arbitrator(s)
within thirty (30) days from the time the case is submitted for resolution but
not more than six (6) months from the date of signing of the TOR, or in
cases where a TOR is absent, not more than six (6) months from the date of
the last preliminary conference called for the purpose of finalizing and/or
signing of the TOR. There shall be no extensions of time unless approved by
the CIAC.
SECTION 2. Form of Award - The Award shall be in writing and signed by the
Arbitrator(s). If there is an Arbitral Tribunal, each Arbitrator must indicate
his/her concurrence or dissent, and the decision of the majority shall prevail.
SECTION 3. Contents of the Award - Generally, the Award shall contain the issues
involved, a brief statement and discussion of the facts, and the authority
relied upon for the resolution or disposition of the issues.
SECTION 4. Award Upon Settlement - If the parties settle their dispute(s) during the
course of the arbitration, the Arbitrator/Arbitral Tribunal, upon their request,
may set forth the agreed settlement as an Award.
SECTION 5.Decision as to Costs of Arbitration - In the case of non-monetary claims or
where the parties agreed that the sharing of fees shall be determined by the
Arbitrator(s), the award shall, in addition to dealing with the merits of the
case, fix the costs of the arbitration, and/or decide which of the parties shall
bear the cost(s) or in what proportion the cost(s) shall be borne by each of
them.
SECTION 6. Termination of Jurisdiction - The jurisdiction of the Arbitrator(s) over the
dispute is terminated upon the finality of the Award or Decision. Where an
appeal is taken from a decision or award, and the appellate court directs a rehearing or a hearing on the merits on any issue arising in the case,
jurisdiction terminates only upon a final disposition of the case by the
appellate court and/or a final determination of all incidental matters thereto.

SECTION 7. Notification of Award to Parties - Once an award has been made, provided
that the costs of the arbitration have been fully paid to the Secretariat by the
parties or by one of them, the Secretariat shall notify the parties of the text
signed by the Arbitrator or Arbitral Tribunal.
Additional copies certified true by the Executive Director of the Secretariat
shall be made available, on request and at any time, to the parties or their
counsel but to no one else.
SECTION 8. Deposit of Award - An original of each Award made in accordance with
these Rules shall be deposited with the Secretariat.
The Arbitrators and the Secretariat shall assist the parties in complying with
whatever further formalities may be necessary.
SECTION 9. Motion for Correction of Award - Any of the parties may file a motion for
correction of the award within fifteen (15) days from receipt thereof upon
any of the following grounds:
(i)

an evident miscalculation of figures, a typographical or

arithmetical error

(ii)

an evident mistake in the description of any party, person, date,

amount, thing or property referred to in the award.

The filing of the motion for correction shall interrupt the running of the
period for appeal.
A Motion for Reconsideration or for correction upon grounds other than
those mentioned in this section shall not interrupt the running of the period
for appeal.
ARTICLE XVI
EXECUTION OF FINAL AWARD
SECTION 1. Execution of Award. A final arbitral award shall become executory upon
the lapse of fifteen (15) days from receipt thereof by the parties.
SECTION 2. Appeal. An appeal from a final award may be taken by any of the parties
before the same becomes executory or within the period and in the manner
provided by the Supreme Court.
SECTION 3. Entry of Judgment. If a final award is appealed and a stay or restraining
order is issued by the appellate court, such award shall become executory
upon the issuance of the entry of judgment of the appellate court or upon
the vacation of the stay or restraining order without a preliminary
injunction being issued.

SECTION 4. Effect of Appeal. The appeal shall not stay the execution of an award
sought to be reviewed unless the Court of Appeals shall direct otherwise
upon such terms as it may deem just.
SECTION 5. Execution and Enforcement of Awards. As soon as a decision, order or
award has become final and executory, the Arbitral Tribunal or Sole
Arbitrator shall, with the concurrence or the CIAC, motu propio or on
motion of the prevailing party issue a writ of execution requiring any
sheriff or proper officer to execute said decision, order or award.
SECTION 6. Execution After Appeal. When a writ of execution is issued after appeal
interposed in accordance with these Rules, the Arbitral Tribunal or Sole
Arbitrator, with the concurrence of the CIAC, may require the prevailing
party to post a sufficient bond executed to the adverse party in an amount
equivalent to the amount of the award, conditioned upon restitution in case
the award is reversed partially or totally.
SECTION 7. Stay of Execution Pending Appeal. Execution issued under the preceding
Section may be stayed upon approval by the Arbitral Tribunal or Sole
Arbitrator, with the concurrence of the CIAC, of a bond or counter-bond
posted by the party against whom it is directed, conditioned upon the
performance of the judgment of the appellate court in case it upholds the
appealed award in whole or in part.
SECTION 8. Effect of Reversal of Award. Where an award is partially or totally
reversed on appeal, the Arbitral Tribunal or Sole Arbitrator may, on proper
motion, issue such order of restitution or reparation of damages as equity
and justice may warrant under the circumstances.
ARTICLE XVII
GENERAL RULE
In all matters not expressly provided for in these rules, the CIAC and the Arbitrators shall
act in the spirit of these rules and shall make every effort to make sure that the award is
enforceable at law.

Under the Revised Supreme Court Circular 1-95/1997 Rules of Civil Procedures, CIAC decision
may be appealed on both questions of facts and law.