Question & AnswerQ&A (CIAP Board Resolution No. 1, s. 1998)
The Construction Industry Authority of the Philippines (CIAP) is an agency created to promote the growth and professional development of the local construction industry, created under Presidential Decree No. 1746 dated November 29, 1980.
The state policy is to actively promote the accelerated growth and professional development of the local construction industry to fulfill its role in nation building and gain a foothold in international construction markets by providing a necessary climate and environment for private and public sectors.
The construction industry includes all undertakings in project conceptualization and development; architectural and engineering design; construction planning and management; contracting and execution; materials and equipment manufacture and supply; construction credit and finance; insurance and suretyship; manpower supply, training and safety; and other related areas.
The Authority is composed of: Secretary of Trade and Industry (Chairman); Secretary of Public Works and Highways; Secretary of Transportation and Communications; Secretary of Labor and Employment; Chairman of PCAB; Chairman of POCB; Chairman of PDCB; Chairman of the Construction Manpower Development Foundation; President of the Philippine Contractors Association; and one private construction sector representative appointed by the President.
The PCAB exercises powers and duties including adopting a code of ethics, implementing licensing, registration and accreditation of contractors, issuing and revoking licenses, maintaining lists of licensees, investigating violations, and prosecuting unlicensed contractors under RA 4566.
CIAP has administrative supervision and jurisdiction over the PCAB, POCB, and PDCB including budget approval and review of decisions upon appeals. It also supervises the CIAC administratively but not its quasi-judicial or rule-making functions.
The POCB identifies overseas construction opportunities, publishes market information, accredits Filipino contractors for overseas projects, issues and revokes registrations and incentives, evaluates contractor performance overseas, authorizes exportation of construction materials, negotiates bilateral agreements, and collects fees related to overseas construction activities.
A Filipino Construction Contractor is a Filipino citizen, partnership of Filipinos, or corporation/entity at least 60% owned and managed by Filipino citizens (or 75% ownership for public works under specific laws), who undertakes construction work in the Philippines.
Public Construction refers to all types of construction works/projects for and on behalf of the national government, its instrumentalities, local government units, and government-owned or controlled corporations whether by administration or contract and regardless of funding source.
The CIAC, created under E.O. 1008, is tasked to provide a fair and expeditious non-judicial arbitration process for the settlement of construction disputes, promoting alternative dispute resolution to maintain harmonious relationships between parties.