Law Summary
Qualifications and Term of Board Members
- Members must have at least 10 years of recognized standing in contracting.
- Must be a Filipino citizen and resident for 8 years prior to appointment.
- Minimum age of 35 years and good moral character.
- Term of office is three years with staggered initial terms.
- President may remove members for neglect, incompetence, unethical conduct, etc.
- Vacancies filled for unexpired terms.
Powers and Duties of the Board
- Authority to issue, suspend, revoke contractor licenses.
- Power to investigate violations and issue subpoenas.
- Promulgate rules, adopt a code of ethics, and maintain official seal.
Board Meetings and Compensation
- Minimum one meeting per month; called by Chairman or upon members' request.
- Chairman receives PHP 50 per meeting; members PHP 25 each, capped at PHP 400 monthly.
Reporting Requirements
- Annual detailed report of activities submitted to the President and Congress.
Definitions and Scope
- "Persons" includes individuals, partnerships, corporations, associations, etc.
- "Contractor" defined broadly to include builders, general engineering, general building, and specialty contractors.
- Specific definitions for general engineering contractors (e.g., dams, highways), general building contractors (structures for support/shelter), and specialty contractors (specialized trades).
Exemptions from the Act
- Public government personnel acting as authorized representatives.
- Sale or installation of finished products not permanently fixed.
- Construction on personal property.
- Minor works under PHP 10,000 unless part of larger projects designed to evade the law.
- Registered architects and engineers acting professionally.
- Material men furnishing supplies without fabrication.
Contractor Classifications
- Three main classifications: general engineering, general building, specialty contracting.
- Board empowered to classify and limit contractors’ scope based on qualifications.
- Additional classifications allowed without extra fees.
- Specialty contractors may perform incidental work outside their licensed crafts.
Licensing Examination and Application Requirements
- Board conducts written/oral examinations for license applicants.
- Applicants must show at least two years construction experience and knowledge of applicable laws and administrative principles.
- Corporations or firms qualify through responsible managing officers with authority over contracting operations.
Notification and Suspension for Changes in Personnel
- Licensees must notify Board within 10 days of disassociation or change in responsible managing officer.
- Failure to notify results in ipso facto suspension; restoration possible upon compliance.
License Issuance, Continuity, and Non-Examination Licenses
- Licenses issued within 15 days after approval, valid for the fiscal year.
- Surviving members may continue business after partner’s death if approved.
- Contractors active and licensed for five years before the Act may be licensed without examination.
Record-Keeping and Publication
- Annual publication of contractor listings including license status in widely circulated newspapers.
- Licensees must report changes in personnel, name, or address within 30 days.
Causes for Disciplinary Action
- Willful abandonment of projects without just cause.
- Material deviation from plans/specifications without consent.
- Fraud or misrepresentation to obtain a license.
- Aiding or conspiring with unlicensed persons to evade the Act.
- Failure to comply with Act provisions.
- Willful or fraudulent acts causing injury or damage.
- Responsibility extends to acts by partnerships or corporations affiliated with the licensee.
Disciplinary Proceedings and Jurisdiction
- Board investigates complaints or acts motu proprio; may suspend or revoke licenses.
- Charges must be filed within one year, except fraud cases within two years from discovery.
- Suspended licenses may be restored; revoked licenses may be reissued within one year upon satisfaction of conditions.
- Board retains jurisdiction despite suspension, revocation, lapsing, or surrender of licenses.
Enforcement and Penalties
- Law enforcement officers mandated to enforce the Act and report violations.
- Board authorized to seek court injunctions against unlicensed contractors.
- Unlicensed contracting or fraud in licensing is a misdemeanor punishable by fines of PHP 500 to PHP 5,000.
Miscellaneous Provisions
- Architects and engineers must include licensing requirements in bidding documents.
- Responsible managing officers of licensed firms must have individual licenses; illegal to act without one.
- Joint ventures of licensed contractors must secure additional joint licenses before joint bidding.
Fees
- PHP 50 for original license, PHP 60 for examination, and PHP 50 for annual renewal.
License Renewal and Non-Renewal
- Renewal applications due by June 30 each fiscal year with fees.
- Late renewal subject to additional PHP 20 fee.
- Licenses suspended for over one year prior to renewal application will not be renewed.
Special Provisions
- Separability clause ensures constitutionality of other provisions if one is invalidated.
- Repeals all inconsistent laws or parts thereof.
- Act effective upon approval.