Legal basis and governing framework
- Registration to participate in government projects is required under the Revised Guidelines for Registration and Classifications and Republic Act No. 9184.
- The resolution anchors its policy on the framework that government registration must remain valid to participate in government projects.
- The resolution treats undertaking government projects without valid registration as conduct equivalent to undertaking construction without a valid license under the applicable fee rule.
Policy intent and rationale
- The resolution recognizes that government registration has a three-year validity reckoned from its start.
- The resolution recognizes that contractors often miss re-registration because they fail to file applications before the validity expires.
- The resolution recognizes that PCAB accepts applications for re-registration three months prior to expiration.
- The resolution recognizes that PCAB synchronized the expiration of government registration to coincide with the expiration of the license to assist timely re-registration.
Coverage: re-registration applicants with projects
- The resolution applies to all re-registration applicants.
- The resolution applies specifically when the applicant has existing projects after the expiration of the registration.
- The resolution covers contractors who continue to undertake government projects even after government registration has expired.
- The resolution covers situations where the contractor has not renewed the government registration after expiration.
- The resolution treats the scenario as occurring notwithstanding PCAB’s acceptance of re-registration applications three months prior to expiration.
Additional license fee assessment rule
- The resolution assesses an Additional License Fee for qualifying re-registration applicants.
- The Additional License Fee is Php5,000 per year or a fraction thereof of non-renewal.
- The resolution directs that qualifying applicants are to be assessed the Additional License Fee “similarly”—i.e., on the same basis used for undertaking construction without a valid license.
- The fee is triggered by undertaking government projects after registration expiration where the registration has not been renewed.
Effect of non-renewal and fee consequence
- The resolution declares that undertaking government projects without valid registration is tantamount to undertaking construction without a valid license.
- The resolution imposes the consequence that such conduct is subject to the Additional License Fee of Php5,000 per year or a fraction thereof of non-renewal.
- The fee consequence is tied to the period of non-renewal after expiration of registration.
- The resolution operationalizes the rule by applying the assessment to re-registration applicants with existing projects after expiration.