Title
Supreme Court
Assessment of Additional License Fee for Late Gov't Registration
Law
Pcab Board No. 194, S. 2014
Decision Date
May 13, 2014
PCAB Board Resolution No. 194 mandates an additional license fee of Php 5,000 per year for contractors who fail to renew their government registration before expiration while continuing to undertake government projects.

Q&A (PCAB BOARD Resolution NO. 194, S. 2014)

The purpose is to ensure that contractors are registered and classified as per the Revised Guidelines and Republic Act No. 9184, which governs procurement and participation in government projects, to maintain standards and legality.

The government registration for contractors has a validity period of three years.

PCAB accepts applications for re-registration three months prior to the expiration of the current registration.

PCAB synchronized the expiration of government registration to coincide with the expiration date of the contractor's license.

Undertaking government projects without a valid registration is considered equivalent to undertaking construction without a valid license, which is subject to an Additional License Fee.

The Additional License Fee is Php5,000 per year or a fraction thereof of non-renewal.

The Resolution took effect fifteen (15) days after its publication in a newspaper of general circulation.

The Resolution was signed by Chairman Ramon F. Allado, Member Farouk M. Macarambon, Sr., Director-in-Charge Atty. Ann Claire C. Cabochan, and Board Secretary Atty. Alejandria G. Gomez.

The legal basis includes the Revised Guidelines for Registration and Classifications and Republic Act No. 9184.

It implies a violation subject to an Additional License Fee as contractors are required to maintain valid registration and license while working on government projects.


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