Pcab Primer

PCAB
PHILIPPINE CONTRACTORS
ACCREDITATION BOARD
COVERAGE
1. PCAB Background & History

2. PCAB Mandate / Purpose
3. Board Composition
4. CIAP & Its Implementing Board
5. Subject of Contractor’s License
6. Types of License
7. Qualifications for Licensing & Registration
8. Authorized Managing Officer Qualifications
9. Sustaining Technical Employee Qualifications
10. STE Disqualifications
11. License Category
12. License Classification
COVERAGE
13. Criteria for License Categorization

14. Categorization-Classification Table
15. Minimum Networth Adjustments
16. Requirements for New/Renewal Applications
17. PCAB Processing Flowchart
18. Fees Structure
19. Causes for Disciplinary Action
20. Current Policies
21. CIAP Website
PCAB Background & History
The Philippine Contractors Accreditation Board

(PCAB) was formed by virtue of RA 4566 passed by
Congress in 1965. It was originally called the
Philippine Contractors Licensing Board and fell
under the Office of the Board of Examiners (now
Professional Regulation Commission (PRC). In
1980, PD 1746 created the Construction Industry
Authority of the Philippines (CIAP) an attached
agency of the Department of Trade and Industry to
promote, accelerate, and regulate the growth and
development of the construction industry. PCAB
was placed under its jurisdiction.
CIAP exercises jurisdiction and supervision over the

following implementing boards; The Philippine
Contractors Accreditation Board (PCAB); The
Philippine Domestic Construction Board
(PDCB); The Philippine Overseas Construction
Board (POCB); and The Construction Industry
Arbitration Commission (CIAC) which takes
charge of disputes arising from, or connected with
government and private contracts.
R.A. 4566 as amended by P.D. No. 1746 provides
that no contractor (including sub-contractor and
specialty contractor) shall engage in the
business of contracting without first having
secured a PCAB license to conduct business.
UNLICENSED
It is an offense to engage in contracting business

without a license first being obtained. All architects
and engineers preparing plans and specifications
for work to be contracted in the Philippines shall
stipulate in their invitation to bidders, whether a
resident of the Philippines or not, and in their
specifications that it will be necessary for any
bidder, whether contractor, sub-contractor or
specialty contractor, to have a license before his bid
is considered.
PCAB Mandate
 To issue, suspend and revoke licenses of

contractors (RA 4566)
 To investigate, violations RA 4566 and its

Implementing Rules and Regulations
 To register and classify licensed contractors for

government projects (RA 9184)
The Republic Act 4566 (Contractor’s License Law)
Purpose:
 To ensure, for the safety of the public, that only

qualified and reliable contractors are allowed to
undertake construction in the country
 To promote, for the benefit of the public and

private sectors and for the national interest, the
orderly growth of the contracting sector and the
upgrading of construction capability
Composition of the Board
• One Chairman and Two Members

• Appointed by the President
 Dr. PERICLES P. DAKAY - Chairman
 Engr. ARTHUR N. ESCALANTE - Member

 Engr. FILOMENO H. CASTILLO, JR. - Member
CIAP & Its Implementing Board
Department of
Trade & Industry
(DTI)
Construction
Industry
Authority of the
Philippines
(CIAP)
Philippine Philippine Philippine Construction Construction

Contractors Overseas Domestic Industry Manpower
Accreditation Construction Construction Arbitration Development
Board Board Board Commission Foundation
(PCAB) (POCB) (PDCB) (CIAC) (CMDF)
  

Contractors Overseas Construction Construction Construction
Licensing & Contractors Quality & Contract Human
Registration Registration & Efficiency Dispute Resources
Development Improvement Resolution Development
Subject of the Contractor’s License
Construction Contractor
 Undertakes or offers to undertake or purports 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 any part thereof, including erection of
scaffolding or other structures or works in
connection therewith.
Subject of the Contractor’s License
Construction Contractor
Note: The term “CONTRACTOR” is synonymous
with the term “BUILDER”. A contractor may be an
individual, firm, partnership, corporations,
association or other organization or any combination
thereof. It includes the principal contractor,
subcontractor and specialty contractor.
Types of Licenses – Regular License
• Reserved for and issued only to constructor-firms of

Filipino sole proprietorship, or partnership /
corporation with at least 60% Filipino equity
participation and duly organized and existing under
and by virtue of the laws of the Philippines.
• Regular License with Annotation (AAAA
category) issued to a domestic corporation with
small or no Filipino equity but with a
capitalization of at least Php 1,000,000,000 in
cash and shall be legally authorized to undertake
only the Vertical Projects (Php 5,000,000,000) and
Horizontal Projects (Php 3,000,000,000)
• Valid for one (1) Contracting Fiscal Year or CFY
(1st of July – 30th of June) unless suspended,
invalidated, or revoked by the PCAB & renewed
annually
Types of Licenses – Special License
• 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 project; only
for BOT or Government ICB projects.
• Valid until completion of the specific project
for which special license is issued; renewed
yearly, as applicable.
Types of Licenses – Special License
o Joint Venture – Local/Foreign

 All members must be PCAB license
holders
o Consortium – Local/Foreign
 At least one of the member is a PCAB
license holder
 Partners are non-contractors who are
either suppliers or financiers
o Foreign Contractor
 100% Foreign Equity
 Capital – P 90M
 Projects are either ICB or BOT
Qualifications for Licensing & Registration
 Authorized Managing Officer (meets minimum

experience requirement; nominated by the firm
and possessing managerial powers)
 Financial Capabilities (meets minimum Net
Worth requirements)
 Technical Personnel (employment of regular
and full-time Sustaining Technical Employees or
STEs with adequate relevant experience in
applied classifications and category)
 Credit Points (meets minimum technical,
financial & overall points for applied category)
Qualifications for Licensing & Registration
 Track Record (for Government Registration –

Single Largest Projects (SLP) completed)
 Equipment*
Authorized Managing Officer (AMO) Qualifications
 Nominated by the firm and possesses managerial

powers;
 The proprietor himself (for sole proprietorship) or a
Senior Executive of a company (for corporation or
partnership);
 With at least 2 years experience in implementing
a construction project in a managerial or
supervisory capacity;
Sustaining Technical Employee (STE) Qualifications
 A technical professional, such as engineer or

architect, duly licensed by the Professional
Regulation Commission (PRC);
 Holder of a valid PRC ID;
 With three (3) years minimum actual construction
experience;
 A full-time employee of the nominating contractor,
not associated professionally or by employment with
any other party, particularly a party engaged in
construction or construction-related activities;
STE Disqualifications
 Presently employed by either a private company or

any government office or government
owned/controlled corporation, or a full time
instructor, or working abroad;
 holder of a valid contractor's license
 Involvement, in any capacity, in any construction
malperformance of grave consequence, suggestive
of his negligence, incompetence and/or malpractice;
 Involvement, by STE himself or in collaboration with
any other person or firm, in any act or omission
liable for disciplinary action of which he/she is or the
other person or firm was found guilty by the PCAB
Board;
STE Disqualifications
 Convicted by a court of competent jurisdiction of any

offense involving moral turpitude; and
 Failure to notify the Board of disassociation from the
former employer;
License Category
 Indicates the graded level of aggregate

capability of a contractor with respect to
his principal classification and is based
on predetermined qualification criteria
which include financial capacity,
experience of STE, track record and
equipment. Evaluation of category shall
be based on the criteria quantified by
credit points in scales as determined by
the Board.
License Category
 Category “AAAA”
 Category “AAA”
 Category “AA”
 Category “A”
 Category “B”
 Category “C”
 Category “D”
 Category “Trade” or “E”
License Classification
 The area of operation that a contractor can

engage is based on the technical
experience of his sustaining technical
employee (STE). A contractor may apply
for and be issued more than one
classification, one of which shall be
designated as his principal classification.
License Classification
 General Engineering (GE)

 General Building (GB)
 Specialty
General Engineering Works
Airports and Airways; Bridges; Dams; Docks and
Wharves; Drainage; Excavating; Flood Control;
Grading; Harbors; Highways; Hydroelectric Projects;
Inland Waterways; Irrigation; Land Leveling and Earth
Moving Projects; Levees; Overpasses; Paving and
Surfacing Work; Pipelines and other system for
transmission of petroleum and other liquid gaseous
substances; Railroads; River Control and Reclamation
Works; Shipyards and Ports; Streets and Roads;
Trenching; Tunnels; Underpasses and other similar
works; Waste Reduction Plants; Water Power; and
Water Supply.
General Building Works
Chemical Plants and Similar Industrial Plants

requiring specialized engineering knowledge and
skill, Mines and Metallurgical Plants, Parks,
Playgrounds and Other Recreational Works,
Power Plants and Other Utility Plants and
Installations, Powerhouses, Refineries, Sewers
and Sewerage Disposal Plants and Systems,
Cements and Concrete works in connection with
the above-mentioned fixed work.
Specialty Works
Construction work requiring special skill and whose
principal contracting business involves the use of
specialized building trades or crafts (Foundation
Work, Structural Steel Work, CC Concrete Pre-
casting, Pre-Stressing or Post-tensioning, Plumbing &
Sanitary Work, Electrical Work, Mechanical Work, Air-
conditioning or Refrigeration, Elevator or Escalator,
Fire Protection Work, Waterproofing Work, Painting
Work, Well-Drilling Work, Communication Facilities,
MS Metal Roofing & Siding Installation, Structural
Demolition, Landscaping, Electro Mechanical Work,
Navigational Facilities, Trade)
Criteria for License Categorization
Financial Capacity 1 pt. per P 100T

Experience of STE 5 pts. per yr. of experience
Over-all Credit Points Based on all qualification criteria
Additional Sources of Credit Points:
10 pts. per year of active
Years of Experience of the Firm
experience
Ave. annual work vol. of work
1 pt. per Php 100,000
accomplished for the last 3 yrs.
Equipment 1 pt. per Php 100,000
ISO 14001:2004 50 pts.
OSHAS 18001:2007 50 pts.
ISO 9001:2008 / ISO 9001:2015 50 pts.
10 pts. for every
Income tax paid
Php 100,000
Categorization Table (BR 201, s. 2017)
General Engineering Classification
*Financial Capacity **STE Relevant Construction Experience
Credit Points
Networth / Credit Points ***Overall
Cate- Required
Stockholder’s Required Individual Aggregate Credit Points
gory (5 points/year of
Equity (1 point/ (years) (man-years) Required
P100,000) actual const.
(Php)
experience)
AAAA 1 Billion 10,000 10 60 300 10,300.00
AAA 180 Million 1,800 10 60 300 2,850.00

AA 90 Million 900 10 50 250 1,365.15
A 30 Million 300 7 21 105 475.00
B 10 Million 100 5 10 50 177.50
C 6 Million 60 3 3 15 105.50
D 2 Million 20 3 3 15 35.00
General Building Classification
Credit Points
Cate- Required
(Php)
experience)
AAAA 1 Billion 10,000 10 60 300 10,300.00
AAA 180 Million 1,800 10 60 300 2,810.00

AA 90 Million 900 10 50 250 1,345.00
A 30 Million 300 7 21 105 471.00
B 10 Million 100 5 10 50 175.50
C 6 Million 60 3 3 15 96.50
D 2 Million 20 3 3 15 35.00
Specialty Classification
Credit Points
Cate- Required
(Php)
experience)
AAAA 1 Billion 10,000 10 60 300 10,300.00
AAA 180 Million 1,800 10 60 300 2,410.00

AA 90 Million 900 10 50 250 1,145.00
A 30 Million 300 7 21 105 421.00
B 10 Million 100 5 10 50 165.50
C 6 Million 60 3 3 15 90.50
D 2 Million 20 3 3 15 35.00
Specialty Classification
Credit Points
Cate- Required
(Php)
experience)
Trade 100
1 none none none 1.00
/E Thousand
Categorization Table
* 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)
Minimum Networth Adjustments
Previous Adjusted Minimum Networth

PCAB
Networth CFY CFY CFY
Category
Requirement 2005-06 2006-07 2018-19
AAAA P 1 Billion - - P1B
AAA 10,000,000 P 60 M P90 M 180 M
AA 5,000,000 30 M 45 M 90 M
A 1,000,000 6M 9M 30 M
B 500,000 3M 4.5 M 10 M
C 300,000 1.5 M 3M 6M
D 100,000 0.6 M 0.9 M 2M
TRADE/E 5,000 30,000 45,000 100,000
Requirements – New Regular License Application
1) Duly accomplished New Regular License application forms;

2) For Sole Proprietorship: DTI Business Name Registration
Certificate (scope of business is NATIONAL and nature of
business is CONSTRUCTION);
3) For Corporation / Partnership: SEC Registration
Certificate, Articles of Partnership/Incorporation and By-
Laws (CONSTRUCTION CONTRACTING as one of the
purposes);
4) Proofs of Employer’s Membership with SSS, PHILHEALTH
and PAG-IBIG
5) Qualified Authorized Managing Officer (AMO), completed
the 2-day AMO seminar with examination and the 40-hour
Construction Safety and Health (COSH) Seminar;
6) Qualified Sustaining Technical Employee/s (STE/s) with
valid PRC IDs and completed COSH seminar (if applicable);
7) Original NBI Clearances of AMO and STE/s;
8) Two (2) Authorized Representatives;
Requirements – New Regular License Application
9) Complete Audited Financial Statement (AFS) with

accompanying Auditor’s Opinion Report and Notes dated
within the last six (6) months immediately preceding the
filing of application (duly audited and signed on every
page by an Independent CPA with valid PRC-BOA
accreditation);
10) For EXISTING/OLD companies: AFS for the immediately
preceding taxable year and copy of Annual Income Tax
Return (ITR) and Quarterly ITR certified by the BIR;
11) Additional Supporting Documents (if applicable) for:
a) Cash in Bank
b) List of constructor’s Properties
c) List of constructor’s Plants, Vehicles and Equipment
d) Schedules of Receivables
e) Construction in Progress
f) Other Assets
Requirements – Renewal of Regular License Application
1) Duly accomplished Renewal of Regular License application

forms;
2) For Corporation/Partnership: Latest SEC GIS;
3) For STE/s below 60 yrs old: pertinent page of latest SSS
Collection List Details;
4) For STE/s 60 years old and above: BIR 1604 CF /
Alphabetical List of Employees/Payees from Whom Taxes
Were Withheld filed with the BIR
5) Audited Financial Statements (AFS) with accompanying
Auditor’s Opinion Report, Statement of Changes in Equity,
Cash Flow and Auditor’s Notes for the preceding taxable
year duly stamped-received by the BIR (duly audited and
signed on each & every page by an Independent CPA
with valid PRC-BOA accreditation);
6) Certified copy of the Annual Income Tax Return filed with
the BIR and proof of payment for the taxable year
immediately preceding the filing of renewal application
7) Schedule of Receivables, if applicable
Processing of Application
Client PCAB
Download and fill-out Pre-screening &
application forms encoding
Submit application and

supporting documents
Evaluation
Pay corresponding
Board Action
fees
Verify result of Board Preparation of License

Action Certificate
Claim / wait for mailed

License Certificate
Releasing
Processing of Application (New Regular License)
Pre-screening
1. Construction is firm’s primary or secondary purpose;
2. Minimum Filipino equity requirements (Regular License –
60%; Gov’t Registration – 75%);
3. Percentage control of the no. of seats occupied by
foreigners in the Board of Directors shall not exceed 40%;
4. Minimum networth for licensing;
5. Legal impediments / qualifications;
a. No pending case/license denial, suspension or
revocation;
b. AMO & STEs not nominated by/connected with other
firms;
c. Firm & AMO’s previous license record (if any).
Pre-screening
6. Completeness of application per PCAB checklist of
requirements;
7. AMO Exam (Category D to AAA);
8. AMO qualification;
9. SSS, PHILHEALTH & PAG-IBIG Membership;
10. 2-day AMO Seminar & 40-hour Const. Safety Seminar;
11. E-mail Address;
12. Documentary Stamp;
13. Prepaid Pouch/Large Brown Envelope;
14. Certified Documents; and
15. Original Signature of AMO on each and every page of the
application forms including supporting documents.
Evaluation
1. Unsupported and unconfirmed accounts from networth;
2. Technical;
3. STE double nomination;
4. STE qualifications and technical credit points for present
classifications and category;
5. Financial;
6. Networth in accordance with prescribed Board limits for
unsupported accounts(cash on hand, receivables,
inventories etc.);
7. Networth and financial credit points for present category;
8. Overall qualifications;
9. Overall credit points for present principal classification and
category;
Board Action
 Approval;
 Approval subject to conditions;
 Disapproval;
 Deferral;
 For new license applicants with foreign equity;
 Panel interview of AMO & principal stockholders prior to
final board action;
 Imposition of fine/Additional License fee;
 Prima facie findings of misrepresentation;
 Conditions for license release;
 Others
Registration for Government Projects
 Duly accomplished Registration for Government

Infrastructure Projects application forms;
 Certified copy of contract agreement and certificate of
completion or acceptance of the single largest project
undertaken for the project type applied for.
 If a private project or sub-contract, certified copy of
withholding tax for the project.
Registration for Government Projects
Third Stage of Adjustment on Allowable Ranges of

Contract Costs (ARCC) and
Single Largest Project (SLP) Completed / Track Record Requirements
(Board Resolution No. 201, series of 2017)
Size License Allowable Ranges of
Single Largest Project (P)
Range Category Contract Costs (P)
Large B AAAA and AAA Above 225 Million < or above 450 Million
Above 150 Million up to 225
Large A AA Up to 450 Million
Million
Medium B A Above 75 Million up to 150 Million Up to 300 Million
Medium A B Above 15 Million up to 75 Million Up to 150 Million
Small B C&D < 15 Million Up to 30 Million
Small A Trade/E Up to 1 Million Up to 1 Million

Note: Par. 3 of Sec. 23.11.2 of the IRR of RA 9184 allows Small A and Small B contractors without similar
experience to bid only for contracts not more than fifty percent (50%) of the allowable range of contract cost
of their respective size range(s).
Sample
New/Renewal
License Certificate
Sample
Special
License Certificate
Fee Structure
New Regular License Application

Category
E/
Fee Particulars AAA AA A B C D
Trade
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Classification Fee
Principal 4,800 2,400 480 240 144 48 nil
Other/s (chargeable for
2,400 1,200 240 120 72 24 nil
each classification)
Categorization Fee 43,200 21,600 7,200 4,800 2,400 1,200 nil
License Fee 100 100 100 100 100 100 100
Documentary Stamp Tax 30 30 30 30 30 30 30
Legal Research Fund 12 12 12 12 12 12 12
Grand Total (P) 51,742 26,542 9,262 6,502 3,958 2,614 1,342
Form of Payment: Cash / Manager’s Check or Cashier’s Check payable to “CIAP”
Fee Structure
Renewal of Regular License Application (Early Filing / On Schedule)
Category
E/
Trade
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Category Review 28,800 14,400 4,800 3,600 1,920 960 nil
License Fee 100 100 100 100 100 100 100
Grand Total (P) 30,142 15,747 6,142 4,942 3,262 2,302 1,342
Renewal of Regular License Application

(Filing After Respective Schedule)
Category
E/
Trade
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
License Fee 100 100 100 100 100 100 100
Additional Processing Fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Grand Total (P) 35,142 20,747 11,142 9,942 8,262 7,302 6,342

Fee Structure
Renewal of Regular License Application

(Filing After 30th of June)
Category
E/
Trade
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
License Fee 100 100 100 100 100 100 100
Additional Processing Fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Additional License Fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Surcharge 40 40 40 40 40 40 40
Grand Total (P) 40,182 25,782 16,182 14,982 13,302 12,342 11,382

Fee Structure
Registration for Government Infrastructure Projects

(New Registration & Re-registration)
Size Range
Fee Particulars Large A/B Medium A/B Small A/B
Filing Fee 1,200 1,200 1,200
Project Kind Fee
First Project Kind 7,200 4,800 2,400
Succeeding Project Kind/s
(if any) 1,200 1,200 1,200
Documentary Stamp Tax 30 30 30
Legal Research Fund 12 12 12
Grand Total (P) 9,642 7,242 4,842
Fee Structure

(Additional Project Kind)
Large A/B & Medium A/B Small A/B
Large A/B Medium A/B
presently & presently & presently
& presently & presently
Fee Particulars with all with all with all
with all with all
Small Small Small
Medium A/B Medium A/B
A/B A/B A/B
Filing Fee 1,200 1,200 1,200 1,200 1,200
Project Kind Fee
First Project Kind 2,400 1,200 4,800 2,400 1,200
Succeeding
Project Kind/s 1,200 1,200 1,200 1,200 1,200
Documentary
Stamp Tax 30 30 30 30 30
Legal Research
Fund 12 12 12 12 12
Grand Total (P) 4,842 3,642 7,242 4,842 3,642

Fee Structure

(Upgrading)
Small A/B
Large A Medium Medium A Small A/B Small A
to
Fee Particulars to A/B to to to Large to
Medium
Large B Large A/B Medium B A/B Small B
A/B
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200
Upgrading of Size
Range nil 2,400 nil 4,800 2,400 nil
Documentary
Stamp Tax 30 30 30 30 30 30
Legal Research
Fund 12 12 12 12 12 12
Grand Total (P) 1,242 3,642 1,242 6,042 3,642 1,242

Fee Structure
Special License – Joint Venture / Consortium (New)

Category
Fee Particulars AAA AA A B C D E/Trade
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
License Fee
(per project basis) 100 100 100 100 100 100 100
Categorization Fee
(per CFY basis) 43,200 21,600 7,200 4,800 2,400 1,200 nil
Grand Total (P) 44,542 22,942 8,542 6,142 3,742 2,542 1,342
Special License – Joint Venture / Consortium (Renewal)
Category
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
License Fee 100 100 100 100 100 100 100
Categorization Fee 28,800 14,400 4,800 3,600 1,920 960 nil
Grand Total (P) 30,142 15,742 6,142 4,942 3,262 2,302 1,342
Fee Structure
Additional / Revision of Classification

Category
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Additional Classification
2,400 1,200 240 120 72 24 12
Fee
Revision/Reissue 100 100 100 100 100 100 100
Grand Total (P) 3,742 2,542 1,549 1,462 1,414 1,366 1,354
Upgrading of License Category
Category
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 n.a.
Categorization Fee 43,600 21,600 7,200 4,800 2,400 1,200 n.a.
License Fee 100 100 100 100 100 100 n.a.
Documentary Stamp Tax 30 30 30 30 30 30 n.a.
Legal Research Fund 12 12 12 12 12 12 n.a.
Grand Total (P) 44,942 22,942 8,542 6,142 3,742 2,542 n.a.
Fee Structure
Change of AMO / Change of Business Name / Change of Business

Name & Status
Category
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
License Fee 100 100 100 100 100 100 100
Grand Total (P) 1,342 1,342 1,342 1,342 1,342 1,342 1,342

Fee Structure
New Special License – Foreign Application

Category
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Classification Fee
Principal 4,800 2,400 480 240 144 48 nil
Other/s (chargeable for
2,400 1,200 240 120 72 24 nil
each classification)
Categorization Fee 43,200 21,600 7,200 4,800 2,400 1,200 nil
License Fee 100 100 100 100 100 100 100
Grand Total (P) 51,742 26,542 9,262 6,502 3,958 2,614 1,342

Fee Structure
Renewal of Special License – Foreign Application

Category
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
License Fee 100 100 100 100 100 100 100
Grand Total (P) 30,142 15,742 6,142 4,942 3,262 2,302 1,342
Penalties
 Fine for engaging in construction without a

license under EO 913 (Maximum of Php
150,000)
 License Suspension
(3 months to 2 years)
 Revocation with blacklisting of AMO (24
months to 60 months)
 Add’l license fee or ALF
(Php 5,000)
Causes for Disciplinary Action
 Willful misrepresentation of a material &

substantial fact in obtaining his license
 Malpractices (abandonment, substantial
departure from/disregard of plans & specs,
misrepresentation, use of spurious docs,
fraudulent acts, license lending, etc.)
 Conviction by a court of an offense involving
moral turpitude
 Engaging in construction without a license
 Operating in unauthorized classification,
expired or lapsed license
Causes for Disciplinary Action
 License Revocation with blacklisting of AMO

(24 months to 60 months)
 License Suspension
(3 months to 24 months)
 STE/AMO Disqualification
(1 year to 3 years)
 Fine for engaging in construction without a
license under EO 913 (Maximum of Php
150,000 + Php 1,000 for each day of
continuing violation)
CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES
PHILIPPINE CONTRACTORS ACCREDITATION BOARD
1. Applications for License - Filing & Acceptance
 Common Requirements
 Complete Documentation on Prescreening
 Nationality (For Regular License)
 60%-40% Filipino-Foreign Equity in terms of
Shares & Peso Value
 Effective Control/Legal & Beneficial Ownership
(Corporate Profit or Surplus, Corporate Assets and
Management Control & Voting Powers)
 Upfront Payment of Non-Refundable Fees
 Appointment of two (2) Authorized
Representative/s (employees of the firm)
 Passing of AMO Exam prior to filing (New Regular
License, Change of Authorized Managing Officer &
Upgrading of License Category):
 One-time passing
 Composed of fifty (50) questions and exam may
be taken for as many times until applicant passes
the same
 Thirty-five (35) correct answers with the first fifteen
(15) questions to be answered perfectly and the
additional twenty (20) correct answers to be taken
from the rest of the remaining 35 questions
 Renewal of Regular License
 Contractors are highly encouraged to file their
renewal of regular license application as early as
January or on/before the scheduled filing date.
License Number Ending Filing Schedule
0 February 1-14
1 February 15-28
2 March 1-15
3 March 16-31
4 April 1-15
5 April 16-30
6 May 1-15
7 May 16-31
8 and new license approved
June 1-15
from January to March
9 and approved from April to
June 16-30
June
 Contractors filing their renewal application on or
before April 15 may use the previously submitted
Audited Financial Statements (AFS)
 Submission of the required Annual Income Tax
Return (ITR) and AFS duly filed with the BIR for
preceding taxable year can be done on or before
the release of the renewed license certificate;
 Should the contractor failed to meet the
qualification requirement based on the current
AFS for its present category, the license category
shall be downgraded to the next lower sustainable
category;
 Contractors filing their renewal applications
beyond the assigned filing schedule shall be
assessed an Additional Processing Fee (APF) of
Php 5,000;
 If the renewal application is filed after June 30, an
Additional License Fee (ALF) of Php 5,000 will
also be imposed;
 Processing Time
 20 working days - New Regular License, Upgrading
of License Category, Special License (Foreign)
 15 working days – Renewal of Regular License,
Additional/revision of Classification, Change of AMO,
Change of Business Name & Status, Registration for
Government Projects
 5 working days – Change of Business Name,
Special license (Joint venture/Consortium),
Public/Private Partnership (PPP) and Build Operate
and Transfer (BOT) projects
 Board Action
 Staff recommendation/discussion through
REFERENDUM sent by e-mail to Board members
 Confirmation by two (2) Board Members
constitutes Board Action
 Contentious issues discussed during Board
Meetings
 AMO Interview
 Proprietors and AMO of applicants for higher
categories (B, A, AA, AAA, AAAA)
 Proprietors/AMOs with doubtful qualifications and
academic disciplines which are non-technical
 AMOs of foreign contractors;
 The New AMO for Corporations, which are wholly
owned by Filipino citizens and have changed their
AMO, shall NOT be required to undergo AMO
interview
 AMO’s of construction firm’s who have upgraded
their license with less than two notches shall NOT
be not be required to undergo AMO interview;
 Post-audit and Verification of documents
submitted
 License Release
 Claim personally/wait license certificate to be
mailed via courier
2. Professionalization of Contractors
 Completion of 2-day Seminar for Authorized
Managing Officers
 to enhance knowledge of building, health, lien and
other relevant laws as prerequisite to filing of
license application.
 Non-delegable: must be attended by the
AMO/Proprietor himself
 Completion of 40-Hour Construction Safety &
Health Course (COSH)
 For juridical entities – may be attended by the AMO
or a Senior Technical Officer w/ at least 5 yrs. exp.
in construction
 For sole proprietorships – must be attended by the
proprietor himself
2. Professionalization of Contractors
 ISO 1400:2004 / OSHAS 18001:2007 / ISO

9001:2008 / ISO 9001:2015 Certifications
 Additional 50 Credit Points each for
categorization purposes to certified
construction firms
 Incentive for promoting quality in their
processes & ensuring compliance with
statutory laws & environmental protection &
promoting safety, health & welfare of workers.
3. Change of AMO Between Spouses in Sole
Proprietorship Construction Firms
 Allowed only for spouses with Property Relations under
Absolute Community of Property or Conjugal
Partnership of Gains
 AMO Spouse shall submit a letter nominating his/her
spouse as AMO in his/her stead
 Joint Affidavit that the property relations existing in the
marriage is either Absolute Community of Property or
Conjugal Partnership of Gains
 The newly-nominated spouse shall possess all of the
qualifications required of AMOs, i.e., two-year
managerial experience in the construction industry,
 The newly-nominated spouse shall pass all the
procedures required of AMOs, i.e. AMO Exam,
completion of AMO seminar and COSH
4. COSH Course for STEs
 All contractors who have STE/s under their employ
are required to have one (1) STE who had
undertaken the COSH Course as a prerequisite to
the issuance of the license.
 Proprietors or AMOs who are at the same time
STE(s) of their respective companies who have
completed the COSH Course are deemed compliant
with this requirement.
 Requirement applies to all contractors irrespective of
category; that is, from category AAA to Trade;
5. Special License Applications (Joint Venture
/ Consortium)
 Must be filed at least five (5) working days before

the bidding
 ARC license of a contractor-partner for a
JV/Consortium is valid for a period of at least fifteen
(15) days at the time of the filing of the license
applications, provided that an application for re-
registration (ARC renewal) is likewise filed with
PCAB.
6. EFPS filing of Audited Financial
Statements (AFS) and Income Tax Return
(ITR) and Payment of Taxes
 Contractors with Category ‘’B’’ and above shall be

required to submit to PCAB their AFS and ITR filed
with the BIR under the Electronic Filing (e-Filing)
and Electronic Payment (e-Payment) to prove their
financial qualification
7. Mandatory Submission of the Statement of
Annual Value of Work Accomplished
(SAVWA) in All Renewal Applications
 Requirement started on CFY 2015-2016

8. License Fees for Authority to Continue On-
Going Projects
 Assessed on contractors who are not eligible for the

renewal of the regular license but have on-going
projects procured during the validity of the license
and have applied for authority to continue the same
 License fees are based on the contractor’s category
and classification prior to non-renewal, suspension,
revocation or cancellation of the license
9. Additional License Fee (ALF) for
Government Registration (ARC) Filed After
Expiration
 Assessed on all re-registration applicants with

existing projects after the expiration of the registration
in the amount of Php 5,000 per year or a fraction
thereof of non-renewal
10. Requirement of ISO 9001 Certification for
Category ‘’AAA’’
 All contractors with License category AAA must be

certified to the version of ISO 9001 existing at the
time of ISO Certification
 Requirement shall be required of new, renewal and
upgrading applications prior to the filing of their
respective applications under Category ‘’AAA’’
11. Amendment to 5-day filing on Special License
 Special license applications filed less than five (5)

working days but at least one (1) day before bidding
or negotiation date may be accepted subject to the
imposition of a non-refundable Additional
Processing Fee (APF), in addition to the usual
licensing fees, as follows:
Registration Size Range APF
Large B PHP 25,000.00
Large A 20,000.00
Medium A & B 15,000.00
Small A & B 10,000.00
11. Amendment to 5-day filing on Special License
 The legal holidays before the date of
bidding/negotiation are excluded from the five-
working day count;
 In the event that the special license certificate of an
approved application cannot be available due to
limited time to process, the Secretariat may upon
request, issue a “Notice of Board Action” indicating
the approval and details of the approved
application, which may be validly presented to the
project owner as compliance with the requirement
stated herein.
12. Regular License with Annotation
 Shall be issued to a domestic corporation with
small or no Filipino equity but with a
capitalization of at least one billion pesos (Php
1,000,000,000) in cash and shall be legally
authorized to undertake only the following
projects:
a)Vertical Projects – include Buildings such as
office or residential condominiums, hotels, malls,
hospitals, schools, warehouses and the like;
Airport terminals, marine terminals, international
transport terminals; Power generation plants;
Manufacturing and assembly facilities; and
Tourism resorts, country clubs and golf courses.
b)Horizontal Projects – include Roads,
expressways and Toll Road Systems; Light
Rail Systems, Heavy Rail Systems, Monorail
System & Bay Area Rapid Transit (BART);
Water Distribution System; Bulk Water
Systems; Sewage & Sewerage System;
Power Transmission System & Power
Distribution System; Telecommunications
Distribution System; Bridges, flyovers,
viaducts, overhead carriageways, Piers,
Wharves & Interchanges; Tunnels,
underground Carriageways & Storm Cisterns;
Dams, Dikes, Seawalls & Breakwater System;
and Reclamation.
 The Minimum Contract Value per single
Project that may be undertaken by a holder of a
Restricted Regular License are set forth below:
 For Vertical Projects – Five Billion Pesos (Php
5,000,000,000) Philippine Currency; and
 For Horizontal Projects – Three Billion Pesos
(Php 3,000,000,000) Philippine Currency
 Every constructor shall be graded and
assigned a category as an adjunct to his
license. General Engineering and General
Building constructors shall be categorized in a
scale of seven, namely; AAAA (quadruple A)
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/E
 Upfront flat rate of Php 100,000 as licensing fee
13. E-filing of Application
 Starting CFY 2017-2018, the filing of license and
registration applications thru Online CLiRS
shall be mandatory for contractors falling under
categories of "AA", "AAA", "AAAA". No
application for these categories shall be
accepted at the PCAB Office or CIAP Windows.
14. Nomination of a STE in a Construction
Company
 Starting CFY 2017-2018, to curtail the practice of
multi STE transfers within the CFY for the sole
purpose of using the STE qualifications, an STE
nomination shall be limited only to one (1)
contractor for one CFY
 In case of transfer of employment by the STE,
the technical qualifications of the nominating
contractor shall be re-evaluated but the
qualifications of the said STE shall only be
considered for the new employer for the next CFY,
if such transfer of employment is still valid and
existing
15. Amendments to the Expiration and
Imposition of Additional Processing Fee for
Government Registration Application
 Government Registration validity is three (3)

years from the date of issuance
 Imposition of Php 5,000 Additional
Processing Fee (APF) for filing beyond the
expiration date.
16. Financial Requirements for License
Categorization; Single Largest Project Completed;
and Allowable Ranges of Contract Costs for
Registration of Contractors for Government Projects
Minimum
Networth/Equity
CFY 2004 -2005 to CFY 2018-2019

Category CFY 2017- 2018 and onwards
AAA Ᵽ 90,000,000 Ᵽ 180,000,000

AA 45,000,000 90,000,000
A 9,000,000 30,000,000
B 4,500,000 10,000,000
C 3,000,000 6,000,000
D 900,000 2,000,000
E 45,000 100,000
CFYs 2006-2007 &
2007-2008 to Present CFY 2018-2019
Size License
Second (2nd) Stage and onwards
Range Category
SLP ARCC SLP ARCC
Large B AAA Above < or above Above < or above
Ᵽ150 M Ᵽ300 M Ᵽ225 M Ᵽ450 M
Large A AA Above Above
Up to Up to
Ᵽ100 M up Ᵽ150 M up
Ᵽ300 M Ᵽ450 M
to Ᵽ150 M to Ᵽ225 M
Medium B A Above Above
Up to Up to
Ᵽ200 M Ᵽ300 M
Medium A B Above Above
Up to Up to
Ᵽ100 M Ᵽ150 M
Small B C&D Up to Up to
≤ Ᵽ10 M ≤ Ᵽ15 M
Ᵽ15 M Ᵽ30 M
Small A E Up to Up to Up to
≤ Ᵽ500 T
Ᵽ 500 T Ᵽ1M Ᵽ1 M
 Effective CFY 2018-2019

 For Government Registration, it shall take
effect on 01 July 2018
CIAP Website
https://www.ciap.dti.gov.ph
Follow-up/Communications thru Email/Contact Numbers
Department of Trade & Industry Philippines

Construction Industry Authority of the Philippines
PHILIPPINE CONTRACTORS ACCREDITATION BOARD
5F Executive Building Center,
369 Sen. Gil J. Puyat Ave., Makati City 1209
Contact Nos.: 895-4258, 895-4220

Helpdesk: 09178482427
E-mail Address: ciappcab.main@gmail.com,
pcab@dti.gov.ph
Thank You
&
Good Luck!

Pcab Primer

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PCAB

1. PCAB Background & History

13. Criteria for License Categorization

The Philippine Contractors Accreditation Board

CIAP exercises jurisdiction and supervision over the

It is an offense to engage in contracting business

 To issue, suspend and revoke licenses of

 To investigate, violations RA 4566 and its

 To register and classify licensed contractors for

 To ensure, for the safety of the public, that only

 To promote, for the benefit of the public and

• One Chairman and Two Members

 Dr. PERICLES P. DAKAY - Chairman

 Engr. ARTHUR N. ESCALANTE - Member

Philippine Philippine Philippine Construction Construction

 Construct, alter, repair, add to, subtract from,

• Reserved for and issued only to constructor-firms of

• Issued to a joint venture, a consortium, a foreign

o Joint Venture – Local/Foreign

 Authorized Managing Officer (meets minimum

 Track Record (for Government Registration –

 Nominated by the firm and possesses managerial

 A technical professional, such as engineer or

 Presently employed by either a private company or

 Convicted by a court of competent jurisdiction of any

 Indicates the graded level of aggregate

 The area of operation that a contractor can

 General Engineering (GE)

Chemical Plants and Similar Industrial Plants

Financial Capacity 1 pt. per P 100T

*Financial Capacity **STE Relevant Construction Experience

AAAA 1 Billion 10,000 10 60 300 10,300.00

AAA 180 Million 1,800 10 60 300 2,850.00

*Financial Capacity **STE Relevant Construction Experience

AAAA 1 Billion 10,000 10 60 300 10,300.00

AAA 180 Million 1,800 10 60 300 2,810.00

*Financial Capacity **STE Relevant Construction Experience

AAAA 1 Billion 10,000 10 60 300 10,300.00

AAA 180 Million 1,800 10 60 300 2,410.00

*Financial Capacity **STE Relevant Construction Experience

* Minimum Qualification Requirements for Principal

** For Other Classification/s, Minimum of 3 Years

*** Overall credit points-inclusive of Equipment

Previous Adjusted Minimum Networth

1) Duly accomplished New Regular License application forms;

9) Complete Audited Financial Statement (AFS) with

1) Duly accomplished Renewal of Regular License application

Submit application and

Verify result of Board Preparation of License

Claim / wait for mailed

 Duly accomplished Registration for Government

Third Stage of Adjustment on Allowable Ranges of

Medium A B Above 15 Million up to 75 Million Up to 150 Million

Small B C&D < 15 Million Up to 30 Million

Small A Trade/E Up to 1 Million Up to 1 Million

New Regular License Application

Renewal of Regular License Application

Form of Payment: Cash / Manager’s Check or Cashier’s Check payable to “CIAP”

Renewal of Regular License Application

Form of Payment: Cash / Manager’s Check or Cashier’s Check payable to “CIAP”

Registration for Government Infrastructure Projects

Registration for Government Infrastructure Projects

Form of Payment: Cash / Manager’s Check or Cashier’s Check payable to “CIAP”