Joint Venture License Requirement Enforcement

Section 38 of Republic Act No. 4566 (Contractors’ License Law) declares it unlawful for two or more contractors to jointly submit a bid without first securing an additional license for acting in the capacity of a joint venture or any such combination.
Section 10.3 of Rule 10 of the IRR of Republic Act No. 4566 requires a joint venture or consortium to secure an additional license to be legally authorized to submit a bid, in the form of a special license known as a joint venture license or consortium license.
The resolution directs strict enforcement so that bidders comply with the joint venture/consortium special license requirement before bidding.

The resolution identifies continued project-owner practice allowing joint ventures/consortia to participate in biddings without requiring the necessary joint venture/consortium license as a disregard of Republic Act No. 4566 and its IRR.
The resolution addresses awards to joint ventures/consortia that had no joint venture/consortium license at the time of bidding.
The resolution states a need to curb the practice “nipped in the bud” through strict enforcement of the license requirement so contractors in individual or combined capacity possess the proper license during bidding.

A special license application for a joint venture or consortium license must be filed at least five (5) working days before the bidding.
Special license applicants must ensure the ARC license of a contractor-partner for the joint venture/consortium is valid for a period of at least fifteen (15) days at the time of filing the special license application.
Special license applicants must file an application for re-registration with PCAB when re-registration is required to maintain the contractor-partner’s ARC license validity for at least fifteen (15) days at filing.

Special license applications are processed through PCAB, consistent with the requirement that applications for re-registration be filed with PCAB.
PCAB compliance focus is on ensuring the special license is applied for before bidding, and that contractor-partner ARC validity meets the fifteen (15) days condition at the time of filing.

The resolution is unanimously approved on April 23, 2014.
The resolution is signed by Ramon F. Allado as Chairman; Victorino V. Lahoz as Member; and Farouk M. Macarambon, Sr. as Member.
It is attested by Ann Claire C. Cabochan as Director-in-Charge and Alejandria G. Gomez as Board Secretary.