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- Inconsistent laws, decrees, orders, proclamations, rules, regulations, or issuances are repealed or amended accordingly to conform with this Act.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