CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES

PHILIPPINE CONTRACTORS ACCREDITATION BOARD

CONSTRUCTION CONTRACTORS
LICENSING & REGISTRATION

REVISION DATE 1/22/2016

 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 Table
15. Minimum Networth Adjustments
16. Requirements for New/Renewal/Amendments
Applications
17. PCAB Processing Flowchart
18. Fees Structure
19. Causes for Disciplinary Action
20. Current Policies
21. CIAP Website / CIAP Portal
 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.
 PCAB Background & History

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.
 PCAB Background & History

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. 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

 Mr. FAROUK M. MACARAMBON, Sr. - 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.
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.
• Validity: CFY (01 July – 30 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.
o Joint Venture / Consortium – Local
and/or Foreign
 All contractors – members must be
individually registered
o Foreign Contractor
 Capital – P 90M
 Projects is either ICB or BOT
• Validity: valid until completion of the specific
project for which special license is issued;
renewed yearly, as applicable.
 Qualifications for Licensing & Registration

 Authorized Managing Officer (meets minimum

experience requirement; nominated by the firm
and possessing managerial powers)
 Financial Capabilities (meets minimum
networth 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 Gov’t 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 50 pts.
10 pts. for every
Income tax paid
Php 100,000
 Categorization Table – General Engineering Classification

FINANCIAL CAPACITY STE RELEVANT CONST. EXPERIENCE**

C
A
T CREDIT CREDIT POINTS OVERALL
NETWORTH /
E POINTS INDIVI- AGGRE- REQUIRED CREDIT
G STOCKHOL- REQUIRED DUAL GATE POINTS
DER’S EQUITY (5 points/year of
O (1 point/ (years) (man-years) actual const. REQUIRED***
R (Php) P100,000) experience)
Y

AAA 90,000,000 900.00 10 60 300 1,950.00

AA 45,000,000 450.00 10 50 250 915.15
A 9,000,000 90.00 7 21 105 265.00
B 4,500,000 45.00 5 10 50 122.50
C 3,000,000 30.00 3 3 15 75.50
D 900,000 9.00 3 3 15 24.00

* 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)
 Categorization Table – General Building Classification

FINANCIAL CAPACITY STE RELEVANT CONST. EXPERIENCE**

C
A
T CREDIT CREDIT POINTS OVERALL
NETWORTH /
E POINTS INDIVI- AGGRE- REQUIRED CREDIT
G STOCKHOL- REQUIRED DUAL GATE POINTS
DER’S EQUITY (5 points/year of
O (1 point/ (years) (man-years) actual const. REQUIRED***
R (Php) P100,000) experience)
Y

AAA 90,000,000 900.00 10 60 300 1,910.00

AA 45,000,000 450.00 10 50 250 895.00
A 9,000,000 90.00 7 21 105 261.00
B 4,500,000 45.00 5 10 50 120.50
C 3,000,000 30.00 3 3 15 66.50
D 900,000 9.00 3 3 15 24.00

* 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)
 Categorization Table – Specialty Classification

FINANCIAL CAPACITY STE RELEVANT CONST. EXPERIENCE**

C
A
T CREDIT CREDIT POINTS OVERALL
NETWORTH /
E POINTS INDIVI- AGGRE- REQUIRED CREDIT
G STOCKHOL- REQUIRED DUAL GATE POINTS
DER’S EQUITY (5 points/year of
O (1 point/ (years) (man-years) actual const. REQUIRED***
R (Php) P100,000) experience)
Y

AAA 90,000,000 900.00 10 60 300 1,510.00

AA 45,000,000 450.00 10 50 250 695.00
A 9,000,000 90.00 7 21 105 211.00
B 4,500,000 45.00 5 10 50 110.50
C 3,000,000 30.00 3 3 15 60.50
D 900,000 9.00 3 3 15 24.00
Trade/
45,000 0.40 none none none 0.15
E

* 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

Adjusted Minimum Networth

Previous
PCAB CFY CFY CFY
Networth
Category 2004-05 2005-06 2006-07
Requirement

AAA P 10,000,000 P 30 M P 60 M P90 M

AA 5,000,000 15 M 30 M 45 M
A 1,000,000 3M 6M 9M

B 500,000 1.5 M 3M 4.5 M

C 300,000 0.9 M 1.5 M 3.0 M
D 100,000 0.3 M 0.6 M 0.9 M
TRADE/E 5,000 15,000 30,000 45,000
 Requirements – New Regular License Application

 Duly accomplished application form for new regular license;

 Latest audited financial statement, not more than six months
old, signed by a BOA accredited CPA;
 Bank certification as proof of cash as of financial statement
date;
 Certified copy of TCT, tax declaration of land and building
assets;
 Certified copy of deeds of sale, official receipts of
transportation and construction equipment, and other assets;
 Certified copies of PRC IDs of technical personnel;
 Personal appearance of technical personnel before the
PCAB or DTI Regional or Provincial offices or CIAP Window;
 Completion of 40-hour Safety Seminar (Basic Occupational
Safety & Health (BOSH) for Construction Site Safety Officer
or Construction Safety & Health (COSH);
 Completion of 2-day AMO Seminar;
 Passed the AMO written examination;
 Requirements – New Regular License Application

 Membership with SSS, PHILHEALTH & PAG-IBIG;

 E-mail Address;
 Integrity Pledge;
 Original signature of AMO on each and every page of the
application forms including supporting documents;
 Self-stamped envelopes for verification of supporting
documents (One self-stamped envelope per supporting
document);
 Proof of payment of Prepaid Courier Pouch for mailing of
license certificate.
 Requirements – Renewed Regular License Application

 Duly accomplished application form for license renewal;

 Year-end audited financial statement signed by a BOA
accredited CPA;
 Bank certification as proof of cash as of financial statement
date;
 Certified copy of TCT, tax declaration of newly acquired land
and building assets;
 Certified copy of deeds of sale, official receipts of newly
acquired transportation and construction equipment, and
other assets;
 Certified copy of pertinent page of CCL (formerly SSS form
R-3) submitted to SSS for the quarter immediately preceding
the filing of application;
 Requirements – Renewed Regular License Application

 If applicant has newly nominated technical personnel,

certified copy of PRC IDs and personal appearance of the
technical personnel before the PCAB or DTI Regional or
Provincial office or CIAP Window;
 Completion of 2-day AMO Seminar;
 Completion of 40-hour Safety Seminar (Basic Occupational
Safety & Health(BOSH) for Construction Site Safety Officer
or Construction Safety & Health(COSH));
 Membership with SSS, PHILHEALTH & PAG-IBIG;
 E-mail Address;
 Integrity Pledge;
 Original signature of AMO on each and every page of the
application forms including supporting documents;
 Self-stamped envelopes for verification of supporting
documents (One self-stamped envelope per supporting
document);
 Proof of payment of Prepaid Courier Pouch for mailing of
license certificate
Application Processing

Pre-screening

Evaluation

Board Action

Preparation of
License Certificate

Releasing
 Application Processing for 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).
 New License Application Processing

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.
 New License Application Processing

Evaluation
Technical
1. STE double nomination;
2. STE qualifications and technical credit points for present
classifications and category;
Financial
1. Unsupported and unconfirmed accounts from Net Worth;
2. Networth in accordance with prescribed Board limits for
unsuppoed accounts(cash on hand, receivables,
inventories etc.);
3. Networth and financial credit points for present category;
4. Overall qualifications;
5. Overall credit points for present principal classification and
category;
 New License Application Processing

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
 Payments – PCAB Licensing Fees

New Regular License

E/Trad
AAA AA A B C D e
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Principal 4,800 2,400 480 240 144 48 n/a
Other/s
Classifica- (chargeable
tion Fee for each 2,400 1,200 240 120 72 24 n/a
classification)

Categorization Fee 43,200 21,600 7,200 4,800 2,400 1,200 n/a

License Fee 100 100 100 100 100 100 100
GRAND TOTAL (Php)* 51,700 26,500 9,220 6,460 3,916 2,572 1,300

*Documentary Stamp Tax (Php 15) + Legal Research Fund (Php 10) will
be added, if applicable.
 Payments – PCAB Licensing Fees
Renewal of Regular License
E/Trad
AAA AA A B C D
e
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 n/a

License Renewal Fee 100 100 100 100 100 100 100

GRAND TOTAL (Php)* 30,100 15,700 6,100 4,900 3,220 2,260 1,300

Additional
Processing Fee
5,000 5,000 5,000 5,000 5,000 5,000 5,000
(filing after the
Late respective schedule)
Renew
al Additional License
Fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000
(filing after 30 June)
Surcharge 40 40 40 40 40 40 40
*Documentary Stamp Tax (Php 15) + Legal Research Fund (Php 10) will
be added, if applicable.
 Payments – PCAB Licensing Fees
Amendments of License
E/Trad
AAA AA A B C D
e
Additional Classification
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 n/a
Principal Classification 2,400 1,200 240 120 72 24 n/a
License
Revision/Re-issue 100 100 100 100 100 100 n/a
GRAND TOTAL (Php)* 3,700 2,500 1,540 1,420 1,372 1,324 n/a
Upgrading of Category
Filing Fee 1,200 1,200 1,200 1,200 1,200 1,200 n/a
Categorization Fee 43,200 21,600 7,200 4,800 2,400 1,200 n/a
License Fee 100 100 100 100 100 100 n/a
GRAND TOTAL (Php)* 44,500 22,900 8,500 6,100 3,700 2,500 n/a
Other Types of Petition (Filing Fee included)
Change of AMO /
Change of Business
1,900 1,900 1,900 1,900 1,900 1,900 1,900
Name / Change of
Business Status (Php)*
*Documentary Stamp Tax (Php 15) + Legal Research Fund (Php 10) will
be added, if applicable.
 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
A. Applications for License
A. Applications for License

o Appointment of Representative
 Not more than two (2) from among the
employees of the firm
 Formal appointment papers with
photocopy of company ID and evidence
of payment of SSS contribution
A. Applications for License
1. Filing & Acceptance
 New & Upgrading
o Passing of AMO Exam prior to filing
 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
A. Applications for License

 Renewal
o Starting CFY 2015-2016, all contractors are
enjoined to file their renewal applications on
their respective amended schedule as
shown by the ending number of the license
issued to them.
A. Applications for License

License Number
Filing Schedule
Ending
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 June 1-15
9 June 16-30
A. Applications for License

o Licenses approved from January to March may

file their renewal applications in June 1-15
while licenses approved from April to June may
file in June 16-30

o Contractors with license number ending 0-3

filing on their time schedule and whose
accounting period is on calendar year i.e., from
January 1-December 31 may submit the
previous year’s Audited Financial Statements
(AFS). For contractors whose accounting
periods are other than calendar year may
submit the latest AFS submitted to the Bureau
of Internal Revenue.
A. Applications for License

o Release of the license certificate for these

contractors is subject to the submission of the
current AFS filed with the BIR and that no
significant erosion of networth or equity is
suffered by the contractor as not to qualify it for
its present category.

o Should the contractor become unqualified for

its present category due to financial erosion,
the application shall be reviewed by the Board
for issuance of the highest category
sustainable by the contractor’s qualification.
A. Applications for License

o Failure to file within the said period will make

the firm liable to pay the Additional Processing
Fee in the amount of Php 5,000

o Moreover, if the renewal application is filed

after the end of the CFY which is 30 June, an
Additional License Fee (ALF) of Php 5,000
which existed before the APF will still be
imposed or a total of Php 10,000 will be
collected on top of the regular renewal fees for
each category
A. Applications for License
2. Processing of Applications / Board Action
 Processing Time Under Normal
Circumstances (outside peak of renewal)
o 10 working days for renewal
o 30 working days for new and upgrading
o 5 to 7 working days for special license
o 5 working days for Public/Private Partnership (PPP)
and Build Operate and Transfer (BOT) projects
 Board Action
o Staff recommendation/discussion through
REFERENDUM sent by e-mail to Board members
o Confirmation by two (2) Board Members constitutes
Board Action
A. Applications for License
2. Processing of Applications / Board Action
 Board Action (cont.)
o Contentious issues discussed during Board
Meetings
 AMO Interview
o Proprietors and AMO of applicants for
higher categories (B, A, AA, AAA)
o Proprietors/AMOs with doubtful
qualifications and academic disciplines
which are non-technical
o AMOs of foreign contractors
A. Applications for License
2. Processing of Applications / Board Action
 Post-audit and Verification of documents
submitted
3. License Release
 License sent to contractors either by mail or
by courier of contractor’s choice
B. Professionalization of Contractors

1. 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
B. Professionalization of Contractors

2. Completion of 40-Hour Construction Safety

& Health Course (COSH) to be conducted by
Course Providers accredited by the Dept. Of
Labor & Employment (DOLE)
 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
B. Professionalization of Contractors

3. Additional 50 Credit Points each for

categorization purposes to certified
construction firms in ISO 1400:2004, OSHAS
18001:2007 & ISO 9001:2008 as incentive for
promoting quality in their processes &
ensuring compliance with statutory laws &
environmental protection & promoting
safety, health & welfare of workers.
C. Change of AMO Between Spouses in Sole
Proprietorship Construction Firms

1. Allowed only for spouses with Property

Relations under Absolute Community of
Property or Conjugal Partnership of Gains
2. AMO Spouse shall submit a letter nominating
his/her spouse as AMO in his/her stead
2. Joint Affidavit that the property relations
existing in the marriage is either Absolute
Community of Property or Conjugal
Partnership of Gains
C. Change of AMO Between Spouses in Sole
Proprietorship Construction Firms

4. The newly-nominated spouse shall possess

all of the qualifications required of AMOs,
i.e., two-year managerial experience in the
construction industry, and the like;
4. The newly-nominated spouse shall pass all
the procedures required of AMOs, i.e. AMO
Exam, completion of AMO seminar and
COSH
D. Compliance with Other Laws

1. Proofs of membership with Pag-IBIG

Fund, PhilHealth & SSS as licensing
requirements to promote welfare of
construction workers
2. Additional 10 credit pts. for every Php
100,000 income tax paid by contractors
to bolster tax collection
E. Cooperative Undertaking between the
Private Sector & Government

 Accreditation of Constructors Assoc. &

Professional Org. to assist the Public Assistance
Desk (PAD) and to serve as an avenue for
information dissemination of PCAB programs,
policies & procedures.
 Requirements:
o Duly registered entity with an existence of at
least 5 years
o Membership of at least 15 licensed contractors
o Affiliate or chapter of a national contractors
assoc. (PCA or NACAP) or professional org.
o Training of at least 2 staff within PCAB
E. Cooperative Undertaking between the
Private Sector & Government

 Allowable activities
o Pre-screening and in some cases, evaluation of
license applications
o Endorsement of license applications to PCAB
with signature of the President and Secretary of
the Association / Professional Organization
o Follow-up of the status of application with
PCAB
o Assist in the verification of documents
submitted by applicants
o Report unlicensed contractors
E. Cooperative Undertaking between the
Private Sector & Government

 One-strike Rule
o Accreditation of Associations / Professional
Org. will be withdrawn by PCAB even with a
single violation of terms & conditions for the
grant thereof
F. Synchronization of Expiry Dates of the
License with the Registration for Gov’t
Contracts (ARC)

1. All new registration and re-registration for gov’t

projects to be issued shall have June 30 as the
expiry month & date on the 3rd year;
2. Corresponding adjustments in terms of
registration validity dates & registration shall be
made on re-registration applicants until such
time that the license & registration expiry dates
are fully synchronized
G. COSH Course for STEs

Starting CFY 2014-2015, 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.
Renewal applications of contractors who do
not yet have the STE with the COSH Course
may still be accepted; however release of the
renewal license is conditioned on the
submission of proof that the contractor has
complied with this requirement.
G. COSH Course for STEs

 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;
H. Employment of a DOLE-accredited Safety
Practitioner

Starting CFY 2015-2016, all Category AAA

contractors shall be required to hire a DOLE-
accredited Safety Practitioner to enhance safety
and health during contract implementation. This
is in addition to the requirement of an STE who
had completed the COSH Course.
The requirement shall be a condition for the
approval of the following applications:
o New contractor’s license application where the
applied category is AAA
H. Employment of a DOLE-accredited Safety
Practitioner
o Renewal of Category AAA license
o Upgrading from a lower category to AAA; and
o Application for any additional classification of a
category AAA contractor
I. Change of Category Trade to Category E

Starting CFY 2014-2015, Category Trade shall

be changed to Category ‘’E’’; thus instead of
issuing a license under Category Trade,
Classification Trade, license will read as
Category ‘’E’’, Classifcation Trade.
Category ‘’E’’ license will be issued to
applicants whose capital is at least Php 45,000
but below Php 900,000 or those who do not have
an STE.
J. 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.
K. 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
Requirement starts on CFY 2015-2016
L. Mechanical, Electrical, Plumbing and Fire
Protection (MEPF) Specialty Classification
Cluster

Financial Requirements shall follow the table

for the specialty license
Applicants must have, as a minimum, the
following sustaining technical employee with
the necessary length of service:
o Mechanical Engineer with experience in
Mechanical Works
L. Mechanical, Electrical, Plumbing and Fire
Protection (MEPF) Specialty Classification
Cluster

o Mechanical Engineer with experience in

Fire Protection Works
o Sanitary Engineer or registered master
plumber with plumbing works experience
o Electrical engineer with experience in
electrical works
 An individual who possesses a combination of
any or all the technical qualification
requirements shall be deemed to have met the
required technical experience in his
specialization
L. Mechanical, Electrical, Plumbing and Fire
Protection (MEPF) Specialty Classification
Cluster

If MEPF is principal classification the contractor

must comply with the minimum individual
experience and corresponding man-years for the
category applied for
M. Mandatory Submission of the Statement of
Annual Value of Work Accomplished
(SAVWA) in All Renewal Applications

 Requirement starts on CFY 2015-2016

N. 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
O. 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
P. 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’’
 Requirement starts on CFY 2015-2016
Q. Assessment of Non-refundable Uniform
Filing Fee

 Php 600 filing fee will be assessed on the

following applications/petitions/submissions:
 Additional Classification/s;
 Change of Principal Classification;
 Upgrading of Category;
 Change of Authorized Managing Officer;
 Change of Business Name;
 Change of Business Status;
 Petition for Authority to Continue Ongoing Project/s;
 Petition for Reconsideration;
 Re-computation of financial or technical qualification;
 Request for replacement of lost license certificate
 Other submissions that require evaluation;
R. Amendment to 5-day filing on Special License

 Amendment to 5-day filing on Special

License
o 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
R. Amendment to 5-day filing on Special License
 Amendment to 5-day filing on Special
License
o The legal holidays before the date of
bidding/negotiation are excluded from the
five-working day count;
o 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.
S. PCAB Integrity Pledge
 Signing of PCAB Integrity Pledge on all New
and Renewal Applications
 CIAP WEBSITE
www.ciap.dti.gov.ph
 Follow-up/Communications thru Email/Contact Numbers

Construction Industry Authority of the Philippines

Philippine Contractors Accreditation Board
5F Executive Building Center,
369 Sen. Gil J. Puyat Ave., Makati City 1209

Tel/TeleFax: 895-4258 / 895-4220

Helpdesk: 09178482427
E-mail Address: pcabphil@yahoo.com,
pcab@dti.gov.ph
 Thank You!
Engr. Isidro D. Eijansantos, Jr.
STIDS/PCAB Evaluator-DTI-ZCO
Tel. Nos. : 991-2704 / 991-2705
CP: 0977-8111711