Title
Revised Guidelines on Blacklisting Constructors
Law
Ciap Board No. 5, S. 2000
Decision Date
Jul 18, 2000
The Construction Industry Authority of the Philippines (CIAP) has approved revised uniform guidelines for blacklisting constructors involved in public construction, establishing clear administrative sanctions for violations during prequalification, bidding, and contract implementation phases to ensure accountability and integrity in government infrastructure projects.
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Scope

  • These guidelines apply to blacklisting constructors involved in government infrastructure projects across all phases: prequalification, bidding, award, and contract implementation.
  • Joint ventures and consortia are also subject to these guidelines with sanctions accumulated among member constructors.

Participation Prohibition

  • Constructors suspended or blacklisted are prohibited from participating in prequalification and bidding for all government tendering agencies throughout the suspension period.
  • Joint ventures or consortia involving blacklisted members are also barred during suspension.
  • Participation may only resume upon issuance of a CIAP certificate confirming delisting.

Key Definitions

  • Appellate Authority: Supervisory agency over blacklisting agencies (e.g., Office of the President or respective department).
  • Blacklisting: Suspension or disqualification from government projects either indefinitely or for a set duration.
  • Blacklisting with Conditions: Suspension period continues until all outstanding liabilities are settled.
  • Constructor: Any licensed individual or entity, including joint ventures or consortia, capable of undertaking infrastructure projects.
  • Contract Implementation: Execution of project work according to contractual documents.
  • Delist: Removal from the consolidated blacklist.
  • Various other terms clarify procedural and organizational elements involved in contracting and blacklisting.

Sanctions and Grounds for Blacklisting

  • Prequalification, Bidding, and Award Phase:

    • Offenses like misrepresentation, bid rigging, unauthorized participation in PBAC activities, and collusion lead to progressive sanctions from suspension (1 year) to perpetual disqualification.
    • Non-submission or late bids without justification result in sanctions from 6 months suspension up to perpetual disqualification.
    • Refusal to sign contracts or submit security leads to forfeiture of bid security and increasing suspensions or disqualifications.
    • Severe breaches such as bribery and graft carry suspensions up to 5 years or perpetual disqualification.
  • Contract Implementation Phase:

    • Failure to mobilize or perform as per contractual obligations results in security forfeiture and disqualification starting from 6 months to perpetual.
    • Unauthorized subcontracting, poor performance, violation of safety standards, and failure to register with DOLE attracts escalated sanctions.
    • Willful abandonment is sanctioned with at least 2 years disqualification to perpetual.
    • Agencies may take over unfinished work or contract it to others.

Due Process for Blacklisting

  • Verification by PBAC or Project Management Office within 15 calendar days follows any reported offenses.
  • The constructor is notified and given 15 days to respond; hearings are conducted with a hearing officer and observer.
  • Decisions with details on sanctions and duration must be issued within 30 calendar days of last hearing.
  • Decisions are communicated to the constructor and CIAP within 7 calendar days.
  • One motion for reconsideration allowed within 15 days on specified grounds; the agency must resolve within 15 days.
  • Appeals to the appellate authority are permitted within 15 days; decisions on appeal must also be rendered within 15 days.
  • A constructor with pending reconsideration or appeal may participate in bidding but may be disqualified from award if the appeal is denied before the Notice of Award.
  • Sanctions become executory after 15 days from notice unless a motion or appeal is filed.

Delisting Procedures

  • Automatic delisting occurs after sanction periods lapse unless blacklisting is conditional or extended for reasons.
  • For blacklisting with conditions, delisting is granted only after liabilities are fully settled.
  • Perpetual disqualification cases have no delisting.

Information Sharing and Networking

  • Agencies must submit blacklisting and delisting orders to CIAP within 7 days.
  • If referred to the PCAB, decisions with supporting documents must be provided.
  • CIAP publishes a quarterly consolidated blacklist report with detailed data on offenses, sanctions, and statuses, which includes revoked or suspended licenses.

Applicability

  • The guidelines cover all national government agencies, instrumentalities, and government-owned and controlled corporations engaging in infrastructure projects.

Effectivity

  • The guidelines take effect fifteen (15) days after filing with the Office of the National Administrative Register as per the Administrative Code of 1987.

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