Title
Amendments to Contractor's License Law
Law
Republic Act No. 11711
Decision Date
Apr 27, 2022
Republic Act No. 11711 amends Republic Act No. 4566, introducing changes to the licensing process for contractors, including the issuance of licenses upon payment of fees, penalties for engaging in construction work without a license, and the renewal process based on years of operation.

Law Summary

Prohibited Acts Regarding Contractor Licensing

  • It is unlawful for any contractor to bid, contract, undertake construction, or supervise construction work without a valid license.
  • Violations incur a fine of ₱100,000 to ₱500,000 plus 0.1% of project cost and a one-year prohibition from obtaining a license.
  • Joint ventures of licensed contractors must secure an additional license; failure results in fines and automatic revocation.
  • Managing partners, officers, or employees of licensed entities cannot individually engage in contracting without their own valid license, subject to similar fines and prohibitions.
  • Using another’s license, submitting false evidence, impersonation, or use of expired/revoked licenses is punishable by fines of ₱500,000 to ₱1,000,000 and imprisonment of 1 to 6 years.

Deletions of Previous Sections

  • Sections 37 and 38 of the original Act have been deleted.

Fees for Licensing and Examination

  • Original license fee: ₱5,000.
  • Examination fee: ₱6,000.
  • License renewal fee: ₱5,000.
  • The Board can collect and utilize all fees and fines for licensing operations.
  • Fee adjustments are permitted once every three years, not exceeding 15% increase, after stakeholder consultation.

License Renewal Terms

  • Standard license validity: one year.
  • Contractors in good standing for 25+ years may renew every 3 years.
  • Those with 10 to 25 years may renew every 2 years.
  • Those with less than 10 years must renew annually.
  • Renewal applications can be filed in person or online, within 90 to 30 days before license expiration.

Renumbering of Subsequent Sections

  • Section 41 and further sections are renumbered accordingly after amendments.

Separability Clause

  • Any provision declared unconstitutional or invalid does not affect other valid provisions, which remain effective.

Repealing Clause

  • Inconsistent laws, decrees, orders, proclamations, rules, regulations, or issuances are repealed or amended accordingly to conform with this Act.

Effectivity

  • The Act takes effect 15 days after publication in the Official Gazette or two newspapers of general circulation.

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