Title
Amendments to Contractor's License Law
Law
Republic Act No. 11711
Decision Date
Apr 27, 2022
Republic Act No. 11711 amends the Contractor's License Law to impose stricter penalties for unlicensed contracting activities, streamline the licensing process, and establish renewal terms based on the contractor's years of operation.

Q&A (Republic Act No. 11711)

The penalty is a fine of not less than One hundred thousand pesos (P100,000.00) but not more than Five hundred thousand pesos (P500,000.00) plus one-tenth of one percent (0.1%) of the project cost. Additionally, the offender is prohibited from obtaining a contractor's license for one (1) year from the time of being found guilty.

They shall be fined the same amount as under subsection (a) and their licenses shall be automatically revoked. They are also prohibited from obtaining a contractor's license for one (1) year from the time found guilty.

No. It is unlawful for any such person to individually engage in the contracting business or act as a contractor without a license in good standing. The penalty is a fine of not less than P100,000 but not more than P500,000 plus one-tenth of one percent of the project cost and a prohibition from obtaining a license for one year.

A fine ranging from Five hundred thousand pesos (P500,000.00) to One million pesos (P1,000,000.00) and imprisonment of not less than one (1) year but not more than six (6) years.

Five thousand pesos (P5,000.00) for an original license, Six thousand pesos (P6,000.00) for examination, and Five thousand pesos (P5,000.00) for renewal.

Fees can be adjusted not more than once every three (3) years and the increase shall not exceed fifteen percent (15%).

A contractor in good standing for twenty-five (25) years or more may renew every three (3) years; for ten (10) years but less than twenty-five (25) years, every two (2) years. Contractors in good standing for less than ten (10) years must renew annually.

Renewal applications may be filed not earlier than ninety (90) days and not later than thirty (30) days before the license's expiration, either in person or online.

Sections 35, 37, and 38 of the original Republic Act No. 4566 are deleted and replaced or renumbered accordingly as per the amendments.


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