Title
Supreme Court
Contractors' License Law establishment and regulation
Law
Republic Act No. 4566
Decision Date
Jun 19, 1965
The "Contractors' License Law" establishes the Philippine Licensing Board for Contractors, which has the authority to issue, suspend, and revoke licenses of contractors, investigate violations, and adopt rules and regulations for the construction industry in the Philippines.

Q&A (Republic Act No. 4566)

The official title is the "Contractors' License Law."

The Board consists of a Chairman and two other members appointed by the President of the Philippines with the consent of the Commission on Appointments.

Members must have at least ten years of recognized standing in their branch of the contracting business, be a citizen and resident of the Philippines for at least eight years prior to appointment, be at least thirty-five years old, and possess good moral character.

The Board can issue, suspend, and revoke contractor licenses, investigate violations, issue subpoenas, carry out disciplinary actions, promulgate rules and regulations, adopt a code of ethics for contractors, and authenticate official documents with its seal.

Authorized representatives of the Philippine government or its political subdivisions, persons selling or installing finished products not incorporated into the structure, those working on personal property, minor works costing less than PHP 10,000, registered civil engineers or licensed architects acting in their professional capacities, and persons furnishing materials without fabrication.

A contractor is any person or entity that undertakes or offers to undertake construction, alteration, repair, improvement, demolition, or related activities on structures or projects, including subcontractors and specialty contractors.

Contractors are classified into general engineering contractors, general building contractors, and specialty contractors.

Applicants must show at least two years of experience in construction, knowledge of Philippine building, safety, health, lien laws, and administrative principles of the contracting business as deemed necessary by the Board.

Causes include willful abandonment of a project, material departure from plans without consent, misrepresentation in obtaining a license, aiding unlicensed persons, failure to comply with the Act, willful or fraudulent acts causing injury, and participation in acts constituting disciplinary grounds.

They are guilty of a misdemeanor and upon conviction, shall pay a fine between five hundred to five thousand pesos.

No, they must secure an additional license for the joint venture or combination before acting jointly as contractors.

At least once a month, and more often if necessary to perform its duties.

Members serve for a term of three years, with staggered terms for initial appointments.

Original license fee is fifty pesos, examination fee is sixty pesos, and annual renewal fee is fifty pesos, with a twenty peso surcharge for late renewal.

Surviving members may continue to operate under the existing license until its expiration, upon application and approval by the Board within thirty days of death.


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