CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES

PHILIPPINE CONTRACTORS ACCREDITATION BOARD

AN OVERVIEW
 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.
 PCAB – Background & History (cont.)
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, deny, suspend or revoke

contractors licenses. (R.A. 4566)

To register and classify licensed

contractors for government
projects.
 The Republic Act 4566

R.A. 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

 ENGR. PERICLESS P. DAKAY - Chairman

 Datu FAROUK M. MACARAMBON- Member

 ENGR. FILOMENO H. CASTILLO, JR. - Member

 CIAP ORGANIZATIONAL STRUCTURE

DTI

CIAP

Construction Philippine Philippine Philippine Construction

Industry Domestic Contractors Overseas Manpower
Arbitration Construction Accreditation Construction Development
Commission Board Board Board Foundation

Construction Contractors Overseas Construction

Construction
Quality & Licensing Contractors Human
Contract
Efficiency and Registration Resource
Dispute
Improvement Registration & Development
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.

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.
 Types of Licenses
Special License

1. Joint Venture / Consortium – Local

and/or Foreign
 All contractors – members must be
individually registered

2. Foreign Contractor
 Capital – P 90M
 Projects is either ICB or BOT
 License Classification

 G.E. (General Engineering)

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

Sewers and Sewerage Disposal Plants and

Systems, Parks, Playgrounds and Other
Recreational Works, Refineries, Chemical
Plants and Similar Industrial Plants
requiring specialized engineering
knowledge and skill, Powerhouses, Power
Plants and Other Utility Plants and
Installations, Mines and Metallurgical
Plants, Cements and Concrete works in
connection with the above-mentioned fixed
work.
 License Classification
Specialty Works

Construction work requiring

special skill and whose principal
contracting business involves the
use of specialized building trades
or crafts.
 Project Kinds
Specialty Construction

SP-FW - Foundation or Piling Work

SP-SS - Structural Steel Work
SP-CC - Concrete Pre-casting, Pre-stress or
Post-tensioning
SP-PS - Plumbing & Sanitary Work
SP-EE - Electrical Work
SP-ME - Mechanical Work
SP-AC - Air-conditioning or Refrigeration
Work
SP-ES - Elevator & Escalator
 Project Kinds
Specialty Construction (cont.)

SP-FP - Fire Protection Work

SP-WP - Waterproofing Work
SP-PN - Painting Work
SP-WD - Well-Drilling Work
SP-CF - Communication Facilities
SP-MS - Metal Roofing & Siding Installation
SP-SD - Structural Demolition
SP-LS - Landscaping
SP-EM - Electro-Mechanical Work
SP-NF - Navigational Facilities
 License & Registration Criteria/Requirements
 Technical Personnel (employment of regular
and full-time Sustaining Technical Employees
or STEs with adequate relevant experience in
applied classifications and category)
 Financial Capabilities (meets minimum
networth requirements)
 Credit Points (meets minimum technical,
financial & overall points for applied category)
 Track Record (for Gov’t Reg’n – Single Largest
Projects (SLP) completed)

 Equipment
 Criteria for Categorization
Networth 1 pt. per P 100T
Technical 5 pts. per yr. of experience
Over-all Credit Pts.
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 P 100T
accomplished for the last 3 yrs.
Equipment 1 pt. per P 100T
ISO 14001:2004 50 pts.
OSHAS 18001:2007 50 pts.
ISO 9001:2008 50 pts.
10 credit points for every
Income tax paid
Php 100,000
 Minimum Networth Adjustments

Previous ADJUSTED MINIMUM NETWORTH

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

AAA P10,000,000 P30 M P60 M P90 M

AA 5,000,000 15 M 30 M 45 M

A 1,000,000 3 M 6 M 9 M

B 500,000 1.5 M 3 M 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 5,000 15,000 30,000 45,000

 Categorization Table
For General Engineering Classification
C FINANCIAL CAPACITY STE RELEVANT CONST. EXPERIENCE**
A
T CREDIT CREDIT POINTS OVERALL
E NETWORTH/ CREDIT
POINTS REQUIRED
G STOCKHOLDER’S REQUIRED INDIVIDUAL AGGREGATE POINTS
EQUITY (5 points /year of
O (1 point (years) (man-years) REQUIRED***
(PhP) actual const
R /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
For General Building Classification
C FINANCIAL CAPACITY STE RELEVANT CONST. EXPERIENCE**
A
T CREDIT OVERALL
NETWORTH/ CREDIT
E POINTS CREDIT
POINTS
G STOCKHOLDER’S REQUIRED INDIVIDUAL AGGREGATE REQUIRED POINTS
O EQUITY (years) (man-years) (5 points /year REQUIRED***
R (1 point/
(PhP) of actual const
Y P100,000)
experience)

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
For Specialty Classification
FINANCIAL CAPACITY STE RELEVANT CONST. EXPERIENCE**
C
A CREDIT
CREDIT POINTS OVERALL
T NETWORTH/
POINTS REQUIRED CREDIT
E STOCKHOLDER’S REQUIRED INDIVIDUAL AGGREGATE POINTS
G EQUITY (5 points
(years) (man-years) REQUIRED***
O (1 point/ /year of
R (PhP) P100,000) actual const.
Y experience)

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
* 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)
 Contractors Licensing & Registration

Licensing
 Classification (GE, GB & Specialty)
 Categorization (Trade to AAA)

Government Registration & Classification

 Classification (per project type/kind)
 Size range (Small A to Large B)
 Track Record Documents

 Construction Contract
 Cert. of Completion/Acceptance
 Cert. of Creditable Tax Withheld
 Project Kinds
General Engineering Construction
GE1 - Road highway, pavement & bridges

GE2 - Irrigation and flood control

GE3 - Dam, reservoir and tunneling

GE4 - Water supply

GE5 - Port, harbor & offshore engineering

 Project Kinds
General Building Construction

GB1 - Building & industrial plant

GB2 - Sewerage & sewerage treatment/
disposal plant & system
GB3 - Water treatment plant & system
GB4 - Park, playground & recreational
work
 ADJUSTMENTS TO TRACK RECORD
& Adjustment to Track
ALLOWABLE RANGES OFRecord & Allowable
CONTRACT COST (ARCC)
Ranges of Contract Cost (ARCC)
(2nd STAGE)
(2nd Stage)
CFYs 2006-2007 & 2007-2008
CLASSIFICATION LICENSE
(2nd Stage)
(Size Range) CATEGORY
SLP ARCC
< or above
LARGE B AAA Above P150M
P300M
Above P100M
LARGE A AA Up to P300M
up to P150M
Above P50M
MEDIUM B A Up to P200M
up to P100M
Above P10M
MEDIUM A B Up to P100M
up to P50M
SMALL B C&D < P10M Up to P15M
SMALL A TRADE < P500T Up to P500T
* 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 ranges.
 Adjustment to Track Record & Allowable
Ranges of Contract Cost (ARCC)
(3rd Stage) – Not Implemented
CFYs 2008-2009 & 2009-2010
CLASSIFICATION LICENSE (3rd Stage)
(Size Range) CATEGORY
SLP ARCC

LARGE B AAA Above P250M < or above P500M

Above P150M
LARGE A AA Up to P500M
up to P250M
Above P75M
MEDIUM B A Up to P300M
up to P150M
Above P15M
MEDIUM A B Up to P150M
up to P75M
SMALL B C&D < P15M Up to P30M

SMALL A TRADE < P500T Up to P500T

* 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 ranges.
 Type of Applications
 New Contractors’ License
 Renewal of Contractor’s License
 Amendment
 Additional Classification
 Change of Business Name
 Change of Business Name & Status
 Change of Authorized Managing Officer
 Upgrading of Category
 Special License
 Joint Venture/Consortium Local or Foreign
 Foreign Contractor
 Registration for Gov’t Infrastructure
Project
 Legal Requirements

 Duly accomplished application forms

 Cert. of Registration with CWBRG/SEC
 AMO/RAR Nomination
 AMO affidavit
 Board Resolution on AMO nomination
 NBI Clearance
 In case of Non-Filipino AMO;
 Working Visa, ACR, NBI Clearance or equivalent
 Financial Requirements

 Audited Financial Statements

 Auditor must be BOA accredited
 Quarterly or Annual Income Tax Returns
 Documents in support of various assets
(Cash, Construction & Transportation
Equipment, Real Estate), etc.
 Technical Requirements

 List of Sustaining Technical Employees

(STE)
 STE Affidavit
 NBI Clearance
 Actual construction Experience of STE
 Personal Appearance Form
 SSS R-1A or R-3
 Causes for Disciplinary Action

 Malpractices (abandonment, substantial

departure from/disregard of plans & specs,
misrepresentation, use of spurious docs,
fraudulent acts, license lending, etc.)
 Operating in unauthorized classification,
expired or lapsed license
 Willful misrepresentation of a material &
substantial fact in obtaining his license
 Conviction by a court of an offense
involving moral turpitude
 Engaging in construction without a license
 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)
 Contractor’s License

License Validity
 Regular License: CFY (July 1- Jun 30)
unless suspended, invalidated, or
revoked by the PCAB & renewed
annually
 Special License: valid until completion
of the specific project for which
special license is issued; renewed
yearly, as applicable
 PCAB New License Application Processing
Pre-Screening
o Construction is firm’s primary or secondary
purpose
o Minimum Filipino equity requirements
(regular license – 60%; Gov’t req’n – 75%)
o Percentage control of the no. of seats
occupied by foreigners in the Board of
Directors shall not exceed 40%
o Minimum networth for licensing
o Legal impediments / qualifications
 No pending case/license denial,
suspension or revocation
 AMO & STEs not nominated
by/connected with other firms
 Firm & AMO’s previous license
record (if any)
o Completeness of application per PCAB
checklist of requirements
o AMO exam
o AMO qualification
 2 yrs.
 Seminar on Safety
o STE Verification
o Personal Appearance
o Softcopy of Audited Financial Statement
o Upfront fee + Payment of Penalty (if with
existing operation)
Evaluation Board Action
o Unsupported and unconfirmed o Approval
accounts from networth o Approval subject to conditions
o Technical
o Disapproval
 STE double nomination
o Deferral
 STE qualifications and technical
credit points for present o For new license applicants with
classifications and category foreign equity:
o Financial  Panel interview of AMO &
 Networth in accordance with principal stockholders prior to
prescribed Board limits for final board action
unsupported accounts o Others
 Cash on-hand (1/2 of 1%)  Imposition of fine/Additional
 Receivables (50%) License fee
 Inventories (20%)  Prima facie findings of
misrepresentation
 Advances (15%)
 Deferred charges (10%)  Conditions for license release
 Construction-in-progress,
etc.
 Networth and financial credit
points for present category
o Overall qualifications
 Overall credit points for present
principal classification and
category
o Application for Registration and
Classification of Contractor for Gov’t
Infrastructure Projects (ARC)
 PCAB Renewal of License Application Processing
Pre-Screening
 Internal check with PCAB records
for:
o Last renewal
o No pending case/license
denial, suspension, or
revocation
o New STEs not
nominated/connected with
other firms
o Minimum networth for
licensing
o Completeness of
application per PCAB
checklist of requirements
o E-copy of Audited Financial
Statements
o Personal appearance of
new STEs
Evaluation Staff Action Board Action
 Unsupported and unconfirmed  Approved
accounts from networth Approval
 Approval subject to conditions  Approval subject to conditions
 Technical
 Downgrading  Disapproval
o STE double nomination
 Disapproval  Deferral
o STE manyear’s experience
in applied classifications and o Negative equity  Others
credit points
o Erroneous financial o Imposition of
o STE qualifications for statements fine/Additional License fee
principal classification and
highest category o Deferral o Prima facie findings of
misrepresentation
o AMO creditable managerial
and/or technical experience o Conditions for license
release
o AMO qualifications
(including results of AMO
exam)
o For government
registration, track
 Overall qualifications
o Overall credit points and
final classification, category
 Licensing Fee Structure
TYPE OF FEES AAA AA A B C D TRADE

Filing Fee 600 600 600 600 600 600 600

NEW Classification Fee
Principle Class 2,400 1,200 240 120 72 24 Exempt

Others (Chargeable for each 1,200 600 120 60 36 12 Exempt

Classification)

Categorization Fee 21,600 10,800 3,600 2,400 1,200 600 Exempt

License Fee 50 50 50 50 50 50 50
Total 25,850 13,250 4,610 3,230 1,968 1,286 650
 Licensing Fee Structure
TYPE OF FEES AAA AA A B C D TRADE
(Pesos) (Pesos) (Pesos) (Pesos) (Pesos) (Pesos) (Pesos)

Filing Fee 600 600 600 600 600 600 600

Category 14,400 7,200 2,400 1,800 960 480 Exempt

R Review

E
N License
Fee
50 50 50 50 50 50 50

E
W Surcharge
for late 20 20 20 20 20 20 20
A filing

L
Total 15,070 7,870 3,070 2,470 1,630 1,150 670
 Licensing Fee Structure
TYPE OF FEES AAA AA A B C D TRADE
(Pesos) (Pesos) (Pesos) (Pesos) (Pesos) (Pesos) (Pesos)

New Application
S Filing Fee 600 600 600 600 600 600 600
P Category Fee 21,600 10,800 3,600 2,400 1,200 600 Exempt
E (per CFY basis)
C
I
A License 50 50 50 50 50 50 50
Fee
L
Total 22,250 11,450 4,250 3,050 1,850 1,250 650
License

RENEWAL APPLICATION
Filing Fee 600 600 600 600 600 600 600
Category Fee 14,400 7,200 2,400 1,800 960 480 Exempt
(per CFY basis)

License 50 50 50 50 50 50 50
Fee
 CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES
PHILIPPINE CONTRACTORS ACCREDITATION BOARD
A. Applications for License
1. 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
 Management Control & Voting Powers
 Upfront Payment of Non-Refundable Fees
A. Applications for License
 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
 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
1. Filing & Acceptance
 Renewal (BR No. 376 , S 2014)
 Strengthened the staggered filing schedule based on
license number endings
License Ending Number 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 June 1-15
9 June 16-30
A. Applications for License
1. Filing & Acceptance
 Renewal (cont.)
 Discontinued submission of affidavit of
no operation and imposed an automatic
Additional Processing Fee (APF) of Php
5,000 (after renewing month) and another
Php 5,000.00 after June 30
A. Applications for License
2. Processing of Applications / Board
Action (Targets)
 10 Working days for renewal
 30 Working days for new and upgrading
 5 Working days for special license
 5 working days for Public/Private Partnership
(PPP) and Build Operate and Transfer (BOT)
 30 Working days Change of AMO
 15 Working days for CBN and CBS

 Board Action
 Staff recommendation/discussion sent by e-mail
to Board members
 Confirmation by two (2) Board Members
constitutes Board Action
A. Applications for License
2. Processing of Applications / Board
Action
 Board Action (cont.)
 Contentious issues discussed during
Board Meetings

 AMO Interview
 Proprietors and AMO of applicants for
higher categories (B, A, AA, AAA)
 Proprietors/AMOs with doubtful
qualifications and academic disciplines
which are non-technical
 Includes 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 thru
courier (LBC)
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 Safety Training
Organizations (STOs) 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 or
Conjugal Property of Gains
2. AMO Spouse shall submit a letter
nominating his/her spouse as AMO in
his/her stead
3. 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;
5. 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:
 Duly registered entity with an existence of at
least 5 years
 Membership of at least 15 licensed contractors
 Affiliate or chapter of a national contractors
assoc. (PCA or NACAP) or professional org.
 Training of at least 2 staff within PCAB
E. Cooperative Undertaking between
the Private Sector & Government
 Allowable activities
 Pre-screening and in some cases, evaluation
of license applications
 Endorsement of license applications to PCAB
with signature of the President and Secretary
of the Association / Professional
Organization
 Follow-up of the status of application with
PCAB
 Assist in the verification of documents
submitted by applicants
 Report unlicensed contractors
E. Cooperative Undertaking between
the Private Sector & Government
 One-strike Rule
 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 such as that validity dates
may exceed three years or be less and
registration fees may increase or decrease
proportionately during the first 3 years of
the implementation until such time that the
license & registration expiry dates are fully
synchronized
 Requirement of at least one (1) STE to
complete the (CoSH) Course for all
Contractors :
(Board Resolution No. 040 s. 2014)
 At least one (1) STE in its roster of STE
shall complete the CosH Seminar (40 hrs)
effective CFY 2014-2015
 Proprietors & AMO who are at the same time
STE of thier firm are deemed compliant

 Requirement applies to all contractors

irrespective of category; that is, from
category AAA to Trade
Changing Category “Trade” to Category “E”
(Board Resolution No. 042 s. 2014)

• Starting CFY 2014-2015, all license of

Category Trade will be issued as category E

• Specialty classification that require an

approprite STE with at least 3 years
construction experience in the specialty
applied for
 Strict Compliance with Special License
requirement to concerned Joint
Venture/Consortium before
Bidding/Negotiation Date
BR 047, Series 2015
 Applications must be filed at least a
day before the bidding date

 Registration Particulars (ARC) must be

valid at least Fifteen (15) Days at the
time of filing of special license
Requiring the Submission of Audited
Financial Statement and Income Tax Return
Filed and Paid through Electronic Filing and
Payment (eFPS) BR. No. 187 series of 2014

 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
Mandatory Submission of the Statement of
Annual Value of Work Accomplished (SAVWA)
in All Renewal Applications (BR 192, s2014)

 Requirement starts on CFY 2015-2016

 Application which shows income from
construction without the fully
accomloshed SAVWA shall be
considered incomplete and shall not
be accepted)
 Additional License Fee (ALF) for
Government Registration (ARC) Filed After
Expiration ( BR 194, s2014)

 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
 Mechanical, Electrical, Plumbing and Fire
Protection (MEPF) Specialty Classification
Cluster (BR 188, s 2014)
 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:
 Mechanical Engineer with experience in Mechanical
Works
 Mechanical Engineer with experience in Fire
Protection Works
 Sanitary Engineer or registered master plumber with
plumbing works experience
 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
 If MEPF is principal classification the
contractor must comply with the minimum
individual experience and corresponding
man-years for the category applied for
License Fees for Authority to Continue On-
Going Projects (BR 193, S2014)

 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
Encouraged unlicensed contractors to
legalize operation thru Amnesty program
from 01 December 2014 to February 28,
2015 with the following features:
(Board Resolution No. 434 s. 2014)

• Few supporting documents

• Php 10,000 Additional License Fee
• Trade - Category and Classification

Extended until 30 April 2015

For other inquiries please contact us at:

Tel. Nos. 895.4258 / 895.4220 / 897.0869

Telefax. 895.4220

Email address: pcabphil@yahoo.com

Website: ciap.dti.gov.ph
HELPDESK #: 09178482427
 REMINDER
Listed below are the top causes of deficiency of an Application for
Contractors License (NEW)
Legal Requirement:
•No signature of Authorized Managing Officer (AMO)/Proprietor on all
forms and documents
•Did not present the original documents in lieu of the certificate
photocopy or photocopy of the following;
1.Audited Financial Statement (AFS)/Income tax Return (ITR)
2.SEC Registration, By-laws and General Information Sheet
3.Business Name Registration
4.SSS, Philhealth and Pag-IBIG Membership of the firm
5.Authorized Managing Officer (AMO) Seminar and Construction
Occupational Safety and Health Seminar Certificate
6.AMO failed the written examination
7.Official Receipt Certificate of Registration (ORCR)
8.Transfer Certificate of Title (TCT)
9.Deed of Sale
Financial Requirement:
Audited Financial Statements (AFS)
No Notes to Financial Statement
Date of Bank Statement is different with the date of Audited
Financial Statement or Balance sheet
No Signature of the Auditor on the Audited Financial System
Expired Professional Regulation Commission (PRC) ID / Board of
Accountancy (BOA) Accreditation
No Accounts Receivables/Schedule of inventories

Technical Requirement;
Not duly accomplished Sustaining Technical Employee (STE)
Affidavit of Undertaking
No Personal Appearance of STE
Expired PRC ID
Not duly accomplish STE’s Affidavit of Work Experience
 REMINDER
Listed below are the top causes of deficiency of an Application for
Renewal of Contractors’ License

Legal Requirement:
No signature of Authorized Managing Officer (AMO)/Proprietor on all
documents and application forms
Did not present the original documents in lieu of the certificate photocopy
or photocopy of the following
Audited Financial Statement (AFS)/Income tax Return (ITR)
SSS R-3/CCL

Financial Requirement:
Audited Financial Statements (AFS)
No Notes to Financial Statement
No Signature of the Auditor on the Audited Financial System
Expired Professional Regulation Commission (PRC) ID / Board of
Accountancy (BOA) Accreditation
No Accounts Receivables/Schedule of inventories
Technical Requirement;
Not duly accomplished Sustaining Technical Employee
(STE) Affidavit of Undertaking
No Personal Appearance of STE
Expired PRC ID
Not duly accomplish STE’s Affidavit of Work
Experience
No SSS R-3/CCL for the quarter preceding the
application
THANK YOU!