Question & AnswerQ&A (EXECUTIVE ORDER NO. 1008)
The title of Executive Order No. 1008 is the "Construction Industry Arbitration Law."
The policy of the State is to encourage the early and expeditious settlement of disputes in the Philippine construction industry.
The Construction Industry Arbitration Commission (CIAC) was created to handle disputes in the Philippine construction industry.
The CIAC operates under the administrative supervision of the Philippine Domestic Construction Board (PDCB).
The CIAC has original and exclusive jurisdiction over disputes arising from or connected with contracts entered into by parties involved in construction in the Philippines, including government or private contracts, provided the parties agree to submit the dispute to voluntary arbitration. However, disputes arising from the employer-employee relationship are excluded and covered by the Labor Code of the Philippines.
The CIAC Commission consists of a Chairman and two members, all appointed by the CIAP Board upon recommendation by the members of the PDCB.
The primary functions include formulating and adopting an arbitration program for the construction industry, enunciating policies and prescribing rules for arbitration, supervising the arbitration program, appointing arbitrators, and directing the performance of its officers and employees.
Members of the Commission serve six-year terms with staggered durations: one member for six years, another for four years, and another for two years. Vacancies are filled only for the unexpired term.
Disputes may be settled by either a sole arbitrator or a panel of three arbitrators. Parties may nominate arbitrators from an accredited list, and if they fail to agree, the CIAC may appoint arbitrators. For a three-arbitrator panel, the third arbitrator is appointed by the CIAC and presides over the panel.
Arbitration expenses such as filling fees, administrative charges, arbitrators’ fees, and expert fees are to be paid as fixed by the CIAC. If experts are requested, their fees are shared equally by the parties if jointly requested, or fully by the requesting party if only one party requests.
The arbitral award is final and binding and not appealable except on questions of law, which may be appealed to the Supreme Court.
Once a decision or award becomes final and executory, the CIAC or the arbitrators can issue a writ of execution for enforcement by the proper officers like sheriffs.
Yes, the CIAC is empowered to collect fees, deposits, costs of arbitration, and administrative charges and may use these receipts to finance its operations with the approval of the PDCB.
If one party fails to pay its share of the deposit, the other party must pay in full. If both fail to pay, the case is dismissed but the parties are still liable to pay half of the agreed administrative charge.