Arbitration machinery for construction disputes

The CIAC is created within the Construction Industry Authority of the Philippines (CIAP).
The commission is under the administrative supervision of the Philippine Domestic Construction Board (PDCB).

CIAC has original and exclusive jurisdiction over disputes related to construction contracts in the Philippines.
Jurisdiction includes both government and private contracts.
Parties must voluntarily agree to arbitration for CIAC jurisdiction to apply.
Types of disputes covered include violations of material specification, contract terms, interpretation issues, damages, delays, payment defaults, and contract cost changes.
Labor disputes arising from employer-employee relationships are excluded and governed by the Labor Code.

The commission consists of a Chairman and two members.
Members are appointed by the CIAP Board upon the recommendation of the PDCB members.

Formulate and adopt arbitration programs specific to the construction industry.
Develop policies and rules governing construction arbitration.
Supervise the arbitration program including appointment and replacement of arbitrators.
Direct officers and employees in performing assigned functions.

Members receive per diems and allowances as fixed by CIAP.
Terms are staggered: six years for the chairman, four years for one member, two years for another.
Vacancies are filled only for the unexpired term.

The Secretariat is headed by an Executive Director responsible for receiving arbitration requests, notifying parties, and handling financial transactions.
The Secretariat includes divisions such as Publication and Training.

CIAC may set and collect filing fees, deposits, arbitration costs, and administrative charges.
Funds collected may finance operations subject to approval by PDCB.

Disputes can be resolved by a sole arbitrator or a three-member Arbitral Tribunal.
Parties may nominate arbitrators from a CIAC-accredited list.
In case of no agreement, CIAC appoints arbitrators considering dispute complexity.
Arbitrators must be individuals of distinction trusted by both government and business sectors.
Arbitrators are not permanent employees and receive fees per case.

Experts, technical or legal, may be appointed upon request by parties or tribunal.
For party-requested experts, the tribunal must confirm appointment.
Fees are shared equally by parties if jointly requested; otherwise, the requesting party bears full cost.

Expenses include filing fees, administrative charges, arbitrators’ fees, experts’ fees, and other charges established by CIAC.
Charges are calculated based on the dispute amount following a fixed table.

Parties must deposit anticipated arbitration expenses before proceedings begin.
Deposits may be paid equally or by one party.
Failure by one party to pay requires the other to cover full amount.
Lack of deposits by both parties results in dismissal but with liability to pay half the administrative charge.

Arbitral awards are binding, final, and generally not appealable except on questions of law.
Appeals on legal issues go to the Supreme Court.

Final and executory decisions can be enforced by writ of execution issued by the arbitral tribunal with CIAC concurrence.
Such writs empower sheriffs or proper officers to implement awards.

CIAC is empowered to formulate and adopt necessary rules and procedures to govern construction arbitration.

If any provision is declared invalid or unconstitutional, the remaining provisions remain effective.

Existing laws and orders inconsistent with this Executive Order are repealed or modified accordingly.