Title
Creation of Construction Industry Authority
Law
Presidential Decree No. 1746
Decision Date
Nov 28, 1980
Presidential Decree No. 1746 establishes the Construction Industry Authority of the Philippines (CIAP) to promote and regulate the growth of the construction industry, ensuring its contribution to the country's economy and providing employment opportunities.

Powers and Objectives of CIAP

  • Promote, accelerate, and regulate the construction industry's growth aligned with national goals
  • Centralized authority to evolve industry strategy
  • Monitor both domestic and international construction operations
  • Identify industry needs, problems, and opportunities
  • Recommend and implement supportive policies, laws, programs, and measures
  • Rationalize investments per national priorities
  • Establish contractor classification criteria reflecting capacity and performance
  • Enforce rules for pre-qualification in public projects
  • Recommend equitable contract conditions
  • Support financing and credit policies for industry sustainability
  • Advocate incentives for overseas construction efforts
  • Establish dispute settlement guidelines
  • Promote manpower training and coordination among government agencies
  • Develop funding mechanisms jointly with the private sector

Organizational Structure

  • CIAP attached to Ministry of Industry for policy coordination
  • Jurisdiction over government agencies engaged with or regulating construction industry
  • Supervision over four implementing agencies: a. Philippine Contractors Accreditation Board b. Philippine Overseas Construction Board c. Philippine Domestic Construction Board d. Construction Manpower Development Foundation

Philippine Contractors Accreditation Board

  • Created under CIAP supervision; replaces abolished Contractors Licensing Board
  • Composed of Chairman and two members appointed by the President
  • Initially to continue Licensing Board functions until new powers are assigned

Philippine Overseas Construction Board

  • Placed under CIAP jurisdiction; maintains existing and additional functions as assigned

Philippine Domestic Construction Board

  • Composed of Chairman and four members appointed by the President
  • Responsible for policies on public and private construction projects
  • Functions:
    • Formulate policies for pre-qualification, bidding, contract awards for public projects
    • Monitor public construction project status and contractor capacities
    • Adjudicate disputes in public contracts with rules approved by the President
    • Recommend standard contract terms and contract price adjustments for private projects
    • Set rules for dispute settlement in private construction

Construction Manpower Development Foundation

  • Established as manpower development arm of CIAP
  • Board of Directors: Chairman and four members appointed by Minister of Industry
  • Functions:
    • Draft overall construction manpower development plans
    • Develop and implement training programs
    • Formulate skill standards and testing in coordination with government agencies
    • Recommend policies on training and manpower export
    • Develop funding mechanisms including fee collection and income-generating activities
    • Authorized to borrow to support operations
  • Coordinates with related government bodies including the National Manpower and Youth Council

Executive Office

  • Led by full-time Executive Director appointed by the CIAP Chairman
  • Responsible for monitoring policy implementation and coordination
  • Executive Director reports directly to CIAP
  • Constitutes technical, legal, and management staff
  • Implementing agencies maintain their secretariats headed by Executive Officers, subject to rules
  • Philippine Overseas Construction Board retains its executive staff
  • Direction given for all relevant government agencies to coordinate with CIAP

Compensation

  • CIAP fixes per diems of Chairmen and board members of implementing agencies
  • Salaries and allowances of Executive Director and staff also fixed by CIAP, subject to applicable rules

Meetings

  • CIAP and Boards of implementing agencies to meet at least quarterly
  • Special meetings may be convened by Chairmen
  • Majority presence required for quorum

Rules and Regulations

  • CIAP authorized to issue necessary rules and regulations for effective implementation

Funding and Financial Provisions

  • Initial appropriated amount of PhP 5,000,000 for operating and capital expenses
  • CIAP empowered to collect fees and generate income for operations
  • Income utilization allowed regardless of contrary legal provisions

Effectivity

  • The Decree takes effect immediately upon issuance.

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