Law Summary
Definitions and Scope of Key Terms
- Infrastructure Projects: construction/rehabilitation of roads, airports, railways, ports, flood control, water supply, dams, buildings, communication facilities, power plants, etc., integral to government capital investment
- Filipino Contractor: Filipino citizen, partnership, or corporation with at least 75% Filipino-owned capital stock
- Inter-Agency Committee (IAC): body tasked with registering, classifying, and predisqualifying contractors
- IAC-Category: size classification of contractors as small, medium, or large
- IAC-Classification: classification by types/classes of projects such as roads, buildings, etc.
Eligibility for IAC Registration
- Filipino contractors as defined
- Joint ventures of two or more contractors complying with LOI No. 630 and accredited by the Philippine Contractors Accreditation Board (PCAB)
- Foreign contractors licensed by PCAB, allowed for internationally bid foreign-assisted projects under agreed procedures
IAC Registration System
- Screening contractors to assess ability to undertake various projects without specific contract reference
- Project classifications cover General Engineering (roads, irrigation, dams, water supply, ports), General Building (buildings, power plants, communication facilities, sewerage), and Specialties (foundation work, mechanical and electrical work, air conditioning, etc.)
- Contractor categorization based on capacity to handle contracts by cost:
- Small (≤P0.5M, ≤P3.0M), Medium (>P3.0M up to P15M/P30M), Large (>P3.0M up to P50M, >P50M)
- Certificates of Registration:
- Regular Certificates: valid for 3 years for Filipino contractors, upgradable and renewable
- Special Certificates: for joint ventures and foreign contractors tied to specific projects; valid for project duration or 3 years
- Monitoring and downgrading or cancellation based on compliance with minimum requirements
- Registered contractors deemed eligible for pre-qualification within certificate limits
Registration Criteria
- Legal qualifications: valid contractor’s license per R.A. 4566, joint venture agreements where applicable, special licenses for foreign contractors
- Contractor license category tied to PCAB classification based on capital/net worth, experience, equipment, years in operation, and turnover
- Track record requirement: evaluation of largest relevant completed project within last 15 years, with minimum thresholds set for each category
- Performance standards: misconduct or violation grounds for denial or revocation of registration
Invitation and Processing of Applications
- Annual public invitation for registration advertised in newspapers
- Technical Working Group at PCAB Secretariat assists in processing, evaluation, verification, inspection, and records management
Disciplinary Actions and Procedures
- Grounds for suspension/revocation: misrepresentation, malpractice including willful abandonment or disregard of plan/specifications, verified violations of P.D. 1594, or participation in such acts
- Enforcement initiated motu proprio by IAC or upon complaint by government agency
- Complaints must be filed within 2 years from discovery
- Complaints referred to PCAB for investigation; PCAB decision guides IAC action
Applicability, Effectivity, and Transitional Provisions
- Applies to all government infrastructure and construction projects including state-owned corporations
- Effective 15 days after publication in two newspapers
- Existing applications before effectivity processed under old guidelines
- Registration validity under old guidelines honored until expiration unless upgrading or renewal is sought, then new guidelines apply
- New guidelines govern all applications from effectivity date onward
This explanation summarizes comprehensive guidelines on registration and classification of contractors involving legal qualifications, categories, classifications, registration procedures, monitoring, and disciplinary rules to maintain standards and uniformity in government infrastructure procurement.