Establishment and Administrative Structure
- Creation of the Construction Industry Arbitration Commission (CIAC) within the Construction Industry Authority of the Philippines (CIAP)
- CIAC placed under administrative supervision of the Philippine Domestic Construction Board (PDCB)
Scope and Jurisdiction
- CIAC has original and exclusive jurisdiction over disputes arising from construction contracts in the Philippines
- Jurisdiction covers disputes before or after breach or abandonment of contract
- Applicable to government and private construction contracts
- Parties must voluntarily agree to submit disputes to arbitration
- Types of disputes include: violation of material/workmanship specs, contract terms interpretation, damages and penalties, delays, defects, payment defaults, contract cost changes
- Excludes employer-employee disputes governed by the Labor Code
Composition of the Commission
- Composed of a Chairman and two members
- Members appointed by CIAP Board based on PDCB recommendations
- Chairperson and members serve staggered six, four, and two-year terms
Functions and Powers of the CIAC
- Formulate and implement arbitration programs and policies for the construction industry
- Prescribe arbitration rules and procedures
- Supervise arbitration processes including appointment and replacement of arbitrators
- Appoint Executive Director, consultants, arbitrators, personnel, and staff
- Collect fees, deposits, and administrative charges related to arbitration
Secretariat and Administrative Support
- Secretariat headed by an Executive Director
- Responsible for receiving arbitration requests, notifying parties, fixing and receiving fees
- Includes divisions for Publication and Training
Arbitration Procedures and Appointment of Arbitrators
- Disputes settled by either a sole arbitrator or a panel of three arbitrators
- Parties may agree on a sole arbitrator from CIAC's accredited list
- If no agreement, CIAC appoints arbitrator(s) considering dispute complexity
- In three-member panel, parties each nominate one arbitrator; third arbitrator appointed by CIAC as presiding arbitrator
- Arbitrators serve only per arbitration engagement; compensated by fees
Appointment and Role of Experts
- Technical or legal experts may be appointed upon request by parties or tribunal
- Parties requesting experts bear the cost, either shared equally or borne fully if only one party requests
- Expert appointment subject to tribunal confirmation
Arbitration Expenses and Deposits
- Expenses include filing fee, administrative charges, arbitrators' fees, experts' fees, and other charges fixed by CIAC
- Fees computed as percentage of disputed sum based on government-prescribed tables
- Parties required to deposit estimated expenses before proceedings start
- Deposit payment may be split or borne by one party; failure to pay deposit can lead to dismissal
Decisions and Awards
- Arbitration awards are final and binding on parties
- Awards are unappealable except on questions of law, appealable only to the Supreme Court
- Upon finality, CIAC or arbitrators may issue writ of execution through proper law enforcement officers
Reporting and Accountability
- CIAC submits annual and periodic reports to CIAP
Rulemaking Authority
- CIAC empowered to create and enforce necessary arbitration rules and procedures
Separability Clause
- Invalidity of any provision does not affect the rest of the Executive Order
Repealing Clause and Effectivity
- Conflicting laws, decrees, orders are repealed or modified accordingly
- Executive Order effective immediately upon promulgation