Question & AnswerQ&A (CIAC Resolution NO. 10-2005)
The policy and objective of the Rules are to provide a fair and expeditious resolution of construction disputes as an alternative to judicial proceedings, restoring harmonious relationships between the parties.
These Rules are applicable to arbitration proceedings before an Arbitral Tribunal composed of one or more arbitrators under the Construction Industry Arbitration Commission (CIAC).
The CIAC has original and exclusive jurisdiction over construction disputes arising from contracts related to construction in the Philippines, whether involving government or private contracts, before or after completion, abandonment, or breach.
Parties include project owners, contractors, subcontractors, fabricators, project managers, design professionals, consultants, quantity surveyors, bondsmen, or issuers of insurance policies related to construction projects bound by arbitration agreements.
No, disputes from employer-employee relationships are excluded from the coverage of these Rules and are governed by the Labor Code of the Philippines.
The claimant must state that either all administrative remedies have been exhausted, there is unreasonable delay in acting on the claim by the government, or that exhaustion of administrative remedies is impracticable due to interim relief application.
An arbitration clause or submission to arbitration is deemed an agreement to submit disputes to CIAC jurisdiction, even if another arbitration institution is mentioned. It may be in writing or electronic communication and need not be signed.
Proceedings continue despite the respondent's absence, and the arbitrator(s) may make an award based on the claimant's evidence. The respondent can still present evidence before the award if justified and allowed by the tribunal.
Arbitrators must be persons of distinction with technical qualifications in construction disputes, coming from professions like engineering, architecture, business, or law, and must be accredited by CIAC except in specific exceptions.
CIAC appoints arbitrators from the respective nominees of each party, considering preferences and CIAC policies. If no agreement on number or nominees exists, CIAC may appoint a sole arbitrator or tribunal.
A foreign arbitrator not accredited by CIAC may be appointed if one party is an international party whose business is outside the Philippines, the arbitrator is not a Filipino national or of the same nationality as the international party, and is nominated by the international party or common choice of arbitrators.
Grounds include relationship to parties or counsel by blood or marriage within specified degrees, financial or fiduciary interest in the dispute, partiality or bias, incompetence, or professional misconduct.
The award must be rendered within 30 days from submission for resolution but no later than six months from signing the Terms of Reference or last preliminary conference, with no extensions allowed unless approved by CIAC.
A motion for correction may be filed within 15 days from receipt of the award for errors like evident miscalculations, mistakes in description, awards upon matters not submitted, or imperfect form not affecting merits. Filing interrupts the appeal period.
Fifteen days after the parties receive the award, unless a petition for review is filed within the 15-day period, which may stay execution if the court issues a TRO.
Arbitration expenses include filing fees, administrative fees, arbitrator's fees, expert fees, and others set by CIAC's Table of Administrative Charges. Parties usually share these costs equally unless the award states otherwise.
Proceedings are confidential and shall not be published except with consent or if necessary for court proceedings. Violations may lead to sanctions including administrative actions and professional disciplinary measures.
Claims not exceeding P1 million are considered small claims, handled by a sole arbitrator with fixed fees at a reduced rate, with abbreviated procedural periods and certain expenses borne by CIAC.